2. Best Practices in PeopleSoft Procurement SRM PUG February 2008
Alexa Dhillon
PeopleSoft SRM Product Strategy Manager

3. Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

4. Leveraging Best Practices Across Procurement
Benefits of Integration to Your Organization:
Reduce Spend on Goods and Services
Greatly reduced processing costs
Less Time on Non-Value Add Activities
Stronger internal controls
Better visibility into the entire process
Better communication across parties to optimize decisions and strategies
Reduce Spend – Contracts
Reduce Processing Costs – PCards, ASN/ERS - streamline
Improved Cash Management – Procurement Cards
Stronger Internal Controls – Contracts, Matching
Better Visibility – Contracts, eSettlements life cycle
Better Communication – eSettlements using dispute settlements

5. Procurement Best Practices Getting a Return on Your Investment
Compliance
Enforce Negotiated Terms
Legal and Organizational
Drive Contract Compliance
Streamline Processing
Increase process effectiveness
Extend Procurement Automation to Suppliers
Free Buyers and Payables Clerks to Focus on more Strategic Activities
Greater Business Insight / Analytics
Gain deeper insight into spending
Enhanced, Configurable Reporting to Meet User Needs

6. Procurement Best Practices Getting a Return on Your Investment
Compliance
Procurement and Supplier Contracts
Streamline Processing
Procurement Cards
eProcurement Approvals
Extend Procurement Automation to Suppliers
eSupplier Connection and Evaluated Receipt Settlement
Greater Business Insight / Analytics
SRM Dashboard

7. Manage Suppliers & Contracts
Procurement Contracts
Source
Purchase
Settle
Supplier Selections
Negotiations and Agreements
Requisitions
Approvals
Purchase Orders
Acknowledgments
Receipts
Procurement Cards
Vouchers / Invoices
Matching
Payments
Manage Suppliers & Contracts
Supplier Performance
Expirations & Renewals

8. Supplier Contract Procurement Contracts vs. Supplier Contracts
Separate Module
Integrates with Core Purchasing
Focuses on Document side of Contract with MS Word Integration
Has structured clause library, rules-based authoring, approval workflow, etc.
SLA and Deliverables Management for contract compliance
Supports powerful contract searching
Starting in Release 8.9
Procurement Contracts
Part of Core Purchasing
Focuses on execution of contract
Captured key information to support execution
Does not have true legal contract document will all terms and conditions
Available for all releases

9. Procurement Contracts Best Practices for Purchasing Contracts
Automate sourcing and releases buyers from routine work
Enforce Contract Usage
Ensure contract pricing and take advantage of volume pricing
Use contract expiration and maximum amount notification
Generate fewer purchase orders
Track contract spend

10. Procurement Contracts Tips for Getting Started
Set Up
Contract Set Controls
User Preferences
Item / Vendor Relationship
Contract
Create Contract
Generate Document (Supplier Contracts)
Approve
Generate Releases
Notifications
Review Contract Events, Analytics, SLAs

11. Procurement Contracts Contract Process Options
Procurement Contract Process Options:
Purchase Order
Release to Single PO Only
Purchasing Contracts
Recurring Voucher
Recurring PO Voucher
Recurring Vouchers
Both
General

12. Procurement Contracts Purchase Order vs. Single PO Contracts
Use Purchase Order Contract when
You want separate purchase orders for each of your contract releases
You want to be able to close your POs once your order is received and paid
Use Single PO Contract when
You or your supplier would like the convenience of tracking, receiving, and vouchering against one PO
You are using PeopleSoft Release 8 SP2 or higher

13. Procurement Contracts Purchasing Contracts
Master Contract Association – Track and Inquire across multiple contracts
Open Item Reference – Eliminates need to define individual items on a contact
Corporate vs. Non-Corporate Contract – Lower maintenance by sharing contracts across multiple business units
Price Adjustments – Permits volume discounts
Automatic Association of Contract onto PO – Ensure contract compliance
Inquiries and Reports
Dashboards and Analytics – View trends, usage, and opportunities
Milestones, Notifications, Minimum and Maximum Edits …

14. Other External Sources
Procurement Contracts Generating Releases from Contract to Purchase Order
Contract
Releases
Requisition
Contract PO Process
PO Calc & PO Create
Purchase Orders
Planning
(Planned Orders)
Other External Sources

15. Procurement Contracts Manually Referencing Contract on Requisition
Planning
(Planned Orders)
Requisition Selection
PO Calc & PO Create
Purchase Orders
Requisitions with Contract
Other External Sources

16. Planning (Planned Orders) Requisition Selection Other external Sources
Procurement Contracts PO Calc Looks for Available Contract if None Specified
Contract
Planning (Planned Orders)
Requisition Selection
PO Calc & PO Create
Purchase Orders
Req without Contract
PO Stage Process
Other external Sources

17. Procurement Contracts Manually Associate Contract on Purchase Order
Select Contract on PO Line, or Copy entire Contract into PO
Purchase Order
Purchase Order
Contract
Purchase Order

18. Purchasing Contracts Process Flow
Consolidate Demand
Conduct Negotiation
Integrated Contracts Enforce Negotiated Terms and Operational Compliance
Analyze and Award
Requisition
Contract / Document / SLAs
Purchase Order
Accrue / Relieve Encumbrance

19. Procurement Contracts Recurring Voucher Best Practices
Scheduling Vouchers for Repetitive Payments
Automatic Invoice Number Generation
Retention – Ensure project completion before paying full amount
Master Contract Association, Miscellaneous Charges, Milestones …
Tracking and Reporting

20. Procurement Contracts Recurring Voucher Releases
Create Vouchers on an as-needed basis
Stage all releases up front, create vouchers as needed, or
Stage and create vouchers as needed
Recurring Voucher
Releases
Voucher Build
Vouchers
Voucher

21. Procurement Contracts Recurring PO Voucher
Encumber funds on Contract prior to Voucher Creation
Applies to Voucher Contracts, and organizations using commitment control
Contract
$12,000
Voucher $4,000
Voucher $4,000
Purchase Order $12,000
Voucher $4,000

22. Supplier Contract Management What Is It?
Contract Document Authoring
Lifecycle Management
Content Management
Create and Enforce Better Supplier Contracts

23. Supplier Contracts : Monitoring & SLAs Enforce Contract Compliance
Proactive Performance Monitoring
Automatic Spend Threshold Notifications
Monitor contracted Service Level Agreements with suppliers and take corrective actions
Understand current spend vs. contract ‘at-a-glance’ and accelerate or reduce spend accordingly
Easily Track SLAs:
Track Spend & Performance:
Define On-Time Metrics
Associate to contract
Update metric based on receipts
View Results In Contracts Monitor
% of quality receipts
% Correct Receipt Qty
% On-time deliveries
% Total Ordered versus Received
All policy deviations are reported to approvers alongside clause deviations in the Contract Deviations Report, guiding approvers to exceptions in the contract along with the standard values.
Procure-to-Pay for Goods & Services

24. Supplier Contracts Request Document

25. Supplier Contracts Contract Request Document

26. Manage Suppliers & Contracts
Procurement Cards
Source
Purchase
Settle
Supplier Selections
Negotiations and Agreements
Requisitions
Approvals
Purchase Orders
Acknowledgments
Receipts
Procurement Cards
Vouchers / Invoices
Matching
Payments
Manage Suppliers & Contracts
Supplier Performance
Expirations & Renewals

27. Procurement Cards Best Practices
Reduce the cost associated with vendor set up, processing invoices/payments to vendors
Efficient management of cash flow
Increase Rebate Potential
Improve Controls (Policies and Procedures, Spend monitoring)
Automate Reconciliation
Faster Payment to Vendors
Global Acceptance

28. Procurement Cards Process Flow
Requisition with Procurement Card as Payment Method
Vendor Ghost Card
PO with Procurement Card as Payment Method
Dispatch PO
Streamline Business Process by Automatically Matching Incoming Bank Statement with Purchase Order
USBank & VISA InfoSpan Statement Layout
Misc. Statement Layout
Procurement Card Stage Process
Inbound File Publish Process
Load Statement Process
Statement Notification Process
Reconcile Transactions
Voucher Stage Process
Voucher Build Process
Budget Check and Post
Need to get file from bank, they need to be able to support the format.
PCard information communicated with vendor
Vendor passes PO information onto card issuing bank
Bank passes PO information to customer in PCard bank statement
Statement Load loading process attempts to use PO ID, along with transaction date and dollar amount, to try and match transaction with PO information
Two notifications: Bank statement workflow and Grace Period Expired Workflow
Procurement Cards on Requisitions and Purchase Orders
To reduce the overhead costs associated with processing invoices and payments
to suppliers companies are increasingly turning to procurement cards as a
preferred payment method. To assist customers in streamlining their
procurement and payables business process, Purchasing 8.9 enables users to
specify Procurement Cards as a payment method on their requisitions and
purchase orders. The users have an option of using their departmental cards or a
ghost card on their transactions with various secure options to transmit the card
numbers to suppliers. With this information available, the system can
automatically match the incoming bank statements with purchase orders,
accurately assigning costs to the right accounts. This enables companies to
reduce their settlement costs with suppliers without sacrificing controls or access
to spend information.

29. Procurement Cards Proxies Enhanced Security and Mass Maintenance
Each card can have a unique set of proxy users
Each proxy user is assigned a Procurement Card Role
Mass Assign Proxy enables management of proxies for multiple cards
To ease the administrative burden of procurement cards, mass maintenance features have been
added to this release. Since an organization can have a large number of procurement card users,
administration of the individual cards can become very time intensive. The Mass Assign Proxy
enables the management of proxies for multiple cards reducing the amount of time needed to
administer and manage procurement cards. If, for example, a user that was an administrator for
multiple cards leaves the company and is replaced by another, the existing set of cards can be
moved to the new administrator.
Change, delete, copy & move proxy rights for Cards

30. Procurement Cards Ghost Card on Vendor
Vendor Ghost Card can automatically be used as a Payment Method on Requisitions and POs

31. Procurement Cards Reconciling Statement
View Transactions of all Users for which Role has Authority
Transaction details for line

32. Procurement Analytic Tools
eProcurement Approvals
Source
Purchase
Settle
Supplier Selections
Negotiations and Agreements
Requisitions
Approvals
Purchase Orders
Acknowledgments
Receipts
Procurement Cards
Vouchers / Invoices
Matching
Payments
Procurement Analytic Tools
Supplier Performance
Expirations & Renewals

33. Visibility into Entire Requisition Lifecycle
Simplified Requisition Processing Manage Requisitions – Release 8.9
Visibility into Entire Requisition Lifecycle
Performing key requisition processing tasks from the Manage Requisitions page accelerates and streamlines the requisition process, making users more efficient and effective
You’ll see enhancements in a bit
Prior to 8.9, lifecycle on separate page

34. Expandable Requisitions
Simplified Requisition Processing Approving Requisitions Made Easier – Release 8.9
Expandable Requisitions
Revisit your approval rules and heirarchy before implementing
Mass Approvals

35. Approve Without Logging into Application
Simplified Requisition Processing Approvals – Release 8.9
Approve Without Logging into Application

36. Manage Suppliers & Contracts
Advanced Shipping Notice / Evaluated Receipt Settlement (Using eSupplier Connection)
Source
Purchase
Settle
Supplier Selections
Negotiations and Agreements
Requisitions
Approvals
Purchase Orders
Receipts
Procurement Cards
Vouchers / Invoices
Matching
Payments
Manage Suppliers & Contracts
Supplier Performance
Expirations & Renewals
automation

37. Advanced Shipping Notice / Evaluated Receipt Settlement Best Practices
Streamline Receipt Creation Process by having your Vendors Send Advanced Shipping Notices (ASN)
Generate Vouchers without Waiting for Vendor Invoice using Evaluated Receipt Settlement (ERS)
Enables Touchless Receipt and Voucher Creation to reduce data entry time and errors
Useful for vendors with whom you have a trusting relationship

38. Advanced Shipping Notice / ERS Process Flow
Supplier Side (eSupplier Connection)
Buyer Side
PO Entry/Approval
View PO
Information
PO Dispatch
PO Acknowledged
Acknowledge PO
Receive by ASN
Ship & Record ASN
with Invoice ID
Voucher Build
Review Shipment
History
Voucher / Matching
Review Payment
Payment

39. Visibility into Transaction History and Supplier’s Performance
eSupplier Connection Supplier’s Dashboard
Visibility into Transaction History and Supplier’s Performance

40. eSupplier Connection Advanced Shipping Notices
Supplier Creates ASN On-Line
Alternatively, ASN loaded through EDI

41. eSupplier Connection Invoice and Payment Details
Suppliers View Transaction Details On-Line
Frees Buyers to Focus on Strategic Activities

42. eSupplier Connection Supplier Performance Metrics
On time performance
PO/Receipt Quantity Performance
Quality Performance
Quantity Performance

43. Procurement Analytic Tools
SRM Dashboard
Source
Purchase
Settle
Supplier Selections
Negotiations and Agreements
Requisitions
Approvals
Purchase Orders
Acknowledgments
Receipts
Procurement Cards
Vouchers / Invoices
Matching
Payments
Procurement Analytic Tools
Supplier Performance
Expirations & Renewals

44. Supplier Relationship Management Insight-Driven Business Processes
SRM Dashboard
Expanded KPIs for buyers and managers
Summary metrics at business unit level
Supplier performance analytics pagelet
Collection of pagelets and metrics presenting aggregated view of source-to-settle business process for Buyers and Managers
SRM Dashboard
The SRM Dashboard was introduced in Release 8.9, is a collection of pagelets and metrics presenting aggregated view of source-to-settle business process. It provides the ability to view Purchasing and eProcurement-related information in one centralized location. We have improved business insight in Release 9.0 through the expanded KPI’s, which include the addition of the following metrics:
For the Buyer Role: Total PO Spend, Percentage Contract Spend, Category Spend, and Supplier Spend
For the Manager Role: Requisition Approval Notification, Total PO Spend, Category Spend, and Supplier Spend
Business Unit Level Summaries includes reporting information summarized for a user defined business unit, including the following metrics:
Requisition Transaction Summary by Month
Purchase Order Transaction Summary by Month
Receipt Transactions Summary by Month
Supplier Performance Analytics allows for the inclusion of a pagelet containing supplier performance information
Contract Mgmt
Following up on the initial launch of PeopleSoft Enterprise Supplier Contract Management in release 8.9, release 9.0 contains the following key enhancements:
Request for Contract – When creating a requisition, the requester can create a supplemental request that captures needed information pertaining to a contract request and any additional information in the supporting document. When you award the requisition to a contract, the contract specialist can reference the original request document and refer to the requesters responses within that request document to help drive the content and enter required data on the actual contract. The benefit of this process is that by the time the contracting specialist gets involved, the requestor has already been prompted for and provided all of the necessary information.
SLA Compliance –Sometimes contracts contain service level agreements or supplier performance clauses that specify measurable goals or expectations for the supplier. Examples include on-time commitments, shipment accuracy, and shipment quality. Previously, PeopleSoft could only list SLAs. PeopleSoft Enterprise Supplier Contract Management 9 enables you to define these targets as part of the contract agreement and contract deliverable structure and have the application proactively notify you concerning the supplier’s performance. Evaluating the transactional data and then notifying the interested party if the supplier falls out of compliance, makes managing performance on an exception basis easier.
Services Procurement
Time reporting -- Customers using PeopleSoft Enterprise Services Procurement 9 to manage resource-based contingent labor can now have Service Providers report time based on shifts, assignments, or both. A shift is essentially a specified period of time that groups of people work such as day shift, swing shift and graveyard shift. Assignments relate to the work being done or conditions of work. For example an assignments can be when a person is on-call and when they are called out. Service providers will be able to report standard time as well as shifts and assignments all in the same user interface.
Expanded roles - Customers will now be able to define a Service Provider with the additional ability to manage the process as a Service Coordinator. By allowing a service provider to act as a services coordinator, PeopleSoft Enterprise Services Procurement 9 streamlines the management of these service providers and integrates them completely into the PeopleSoft Enterprise Services Procurement application. This provides a lower total cost of ownership, better rate compliance, enhanced performance analysis, and easier replacement of service providers.
Requisitioning
Amount-only reqs -- Before PeopleSoft Enterprise Purchasing 9, the requisition was quantity-based. Amount only
requisitions enable requesters to order goods and services specifying only a dollar amount
and not quantity. PeopleSoft Enterprise Purchasing 9 extends support for amount only
requisitions, so requesters now can place an order, receive the order, and pay for an order
based solely on the amount that is purchased.
Off-catalog requests – Item catalogs may not contain all items for which a requestor is searching. The Special Request feature enables users to request off-catalog items by providing item information to
buyers. Typically requesting an item using the Special Request feature is more time consuming than selecting an item from a catalog. If the same item were to be requisitioned repeatedly using the Special Request feature, the requisitioning process would be greatly streamlined for users requesting that common, off-catalog item if it were part of the catalog. Additionally, after the item is added to the catalog, better spend control will occur and the procurement organization may be able to negotiate contracts for this item.

45. Activity Monitor Displays Buyer’s Current Task List
SRM Dashboard Pagelets and Metrics in Release 8.9
Activity Monitor Displays Buyer’s Current Task List

46. SRM Dashboard Pagelets and Metrics in Release 9.0
Mouse over bar indicates amount and total number of schedules for period
98% for period 7/06, Total Schedule Lines: 12

47. SRM Dashboard Spend by Business Unit
Total Spend
by BU

48. SRM Dashboard Spend by Business Unit
Filter and View
Schedules
Drill into PO

49. Supplier Relationship Management SRM Dashboard – Spend by Category
Category Spend Broken Down by Vendor

50. Procurement Best Practices Getting a Return on Your Investment
Compliance
Procurement and Supplier Contracts
Streamline Processing
Procurement Cards
eProcurement Approvals
Extend Procurement Automation to Suppliers
eSupplier Connection and Evaluated Receipt Settlement
Greater Business Insight / Analytics
SRM Dashboard

51. Source-to-Pay Best Practices Benefits
Simplification
Eliminate paper
Reduce manual entry and errors
Standardization
Validation of master and transaction data
Automation
Matching, payment and dispute resolution
Manage and control enterprise spend
Consolidation
Shared services
Supplier collaboration
Strategic alignment of finance activities with overall corporate goals
Gain visibility and control over spending
Focus on strategic activities
Improve internal policy compliance
Better visibility into the entire process
Better communication across parties to optimize decisions and strategies
Leverage supplier base
According to Hackett Group:
Simplification of finance process
Automation of routine or repetitive tasks
Consolidation of redundant resources
Standardization of data and processes
Strategic alignment of finance activities with overall corporate goals
Shared Services:
How:
Centralized ERP Processing
COA Validation
Accounting plus inter/intra company
Allocations
Statutory Reporting
Industry Support & Best Practice
Express Capitalization
Configurable Matching (up to 4 way)
Expense Analysis & Control
Electronic Invoice/Bill Presentment & Payment for Supplier and Customer collaboration
Centralized Payment platform to improve yield on cash assets & improved working capital
Contracts
PCard
ERS
Supplier Collaboration
POAs
Analytics
Duplicate Vendor Checking
Matching (4 way)
Gain visibility and control over spending – which reduces spend on goods and services
Focus on Stretegic activities because spending less time on non-value activities – supplier collab
Other best practices:
Electronic invoices (XML)
Supplier self-service
Online approvals
Online dispute resolution
notifications
Matching at header, lines
Tolerances functionality
Exceptions workflow
Virtual approver
Central payment factory
Real-time bank connectivity
Workflow