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MINISTRY OF FINANCE IFMIS RE-ENGINEERING. Procure to pay process Release 12. Table of Contents. 1.0 IFMIS Financial Management Operating Model 13 1.1 Introduction (Over view of Procure to Pay Process) 14

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slide1

MINISTRY OF FINANCE

IFMIS RE-ENGINEERING

Procure to pay process

Release 12

table of contents
Table ofContents

1.0 IFMIS Financial Management Operating Model 13

1.1 Introduction (Over view of Procure to Pay Process) 14

1.2 P2P Over all Process 16

2.0 Develop Procurement Plan23

3.0 Manage and Record Requisition and Purchase27

3.1 Manage and Record Requisition and Purchase Process Flow 28

3.2 Requisition and Purchase Process at a Glance 32

3.3 Requisition Key Data Elements 33

3.4 Requisition Reports 45

3.5 Supplier 51

3.6 Purchase Order 77

3.7 Purchasing Reports 96

4.0 Manage Received Paper Documents104

4.1 Document attachment in PO 108

table of contents1
Table ofContents

5.0 Record Goods Receipt; Approve and Schedule Payment109

5.1 Delivery/ Receipt and Acceptance of Goods and Inspection 110

5.2 Receiving Process 113

5.3 Purchase Order – Receipt 122

5.4 Receiving Reports 128

5.5 Invoice Processing Flow 135

5.6 Invoice Related Reports 192

6.0 Process Payments 199

6.1 Payment Related Reports 225

7.0 Address Vendor Inquiries; Handle Disputes and Exceptions236

8.0 Perform PTP Reconciliations and Period End Close Activities 239

8.1 Accounting Cycle 242

8.2 Period Close Checklist 243

8.3 P2P Close Processes 246

8.4 Overview of the P2P Period Close 247

8.5 Reconcile AP to GL 248

8.6 Payables Reports 249

table of figures
Table of Figures

Figure I To Check Funds 34

Figure II Requisition Headers 35

Figure III Requisition Headers 36

Figure IV Requisition Lines 37

Figure V Requisition Distributions 38

Figure VI Requisition Approval 41

Figure VII Requisition Approval Flow 43

Figure VIII Requisition Approval Flow 44

Figure IX Supplier Creation 54

Figure X Supplier - Type 55

Figure XI Supplier – Setup Steps 56

Figure XII Supplier – Tax Details 57

Figure XIII Supplier – Address Book 58

Figure XIV Supplier – Site Name 59

Figure XV Supplier Site – Address Purpose 61

table of figures1
Table of Figures

Figure XVI Supplier Site Name, Address and OU’s 62

Figure XVII Supplier - Contact Details 63

Figure XVIII Supplier – Bank Account and Assignment Details 64

Figure XIX Supplier – Attach Supplier Bank Information 65

Figure XX Supplier Site – Account Information 66

Figure XXI Supplier Site – Receiving Details 68

Figure XXII Supplier – Payment Details 69

Figure XXIII Supplier – Payment Details 70

Figure XXIV Supplier – Invoice Details 71

Figure XXV Employee as Supplier 73

Figure XXVI Employee as Supplier (Site) 74

Figure XXVII Employee as Supplier (Site) 75

Figure XXVIII Standard Purchase Order - Header 82

Figure XXIX Standard Purchase Order - Header 83

Figure XXX Standard Purchase Order - Lines 84

table of figures2
Table of Figures

Figure XXXI Standard Purchase Order – Lines DFF 85

Figure XXXII Standard Purchase Order – Shipments 86

Figure XXXIII Standard Purchase Order – Match Option 87

Figure XXXIV Standard Purchase Order - Distribution 88

Figure XXXV Standard Purchase Order - Approve 91

Figure XXXVI PO Approval Process 92

Figure XXXVII PO Approval Forward Process 93

Figure XXXVIII PO Approval Notification 94

Figure XXXIX Approved Purchase Order 95

Figure XL Document Attachment Form 108

Figure XLI Purchase Order - Receipt 122

Figure XLII Purchase Order – Receipt Header 123

Figure XLIII Purchase Order – Receipt Line 124

Figure XLIV Purchase Order - Receipt 125

Figure XLV Purchase Order – Receipt Inspection 126

table of figures3
Table of Figures

Figure XLVI Purchase Order – Receipt Inspection 127

Figure XLVII Invoice Batches Processing 144

Figure XLVIII Invoice Batch – Enter NEW 145

Figure XLIX Invoice Entry in Batch 146

Figure L Invoice Header 147

Figure LI Invoice Lines 148

Figure LII Invoice Distribution 149

Figure LIII Invoice Processing Status 151

Figure LIV Invoice Actions 152

Figure LV Invoice Validation 153

Figure LVI Invoice Validation Status 154

Figure LVII Invoice Processing with PO 155

Figure LVIII Invoice Processing with PO Header 156

Figure LIX Invoice Processing with PO Header 157

Figure LX Invoice Processing with PO Match 158

table of figures4
Table of Figures

Figure LXI Invoice Processing with PO Match Lines 159

Figure LXII Invoice Processing with PO Validation 160

Figure LXIII Invoice Processing with PO Status 161

Figure LXIV Prepayment Invoice 163

Figure LXV Prepayment Invoice Header 164

Figure LXVI Prepayment Invoice 165

Figure LXVII Prepayment Invoice Lines 166

Figure LXVIII Prepayment Invoice Distribution 167

Figure LXIX Prepayment Invoice Status 169

Figure LXX Prepayment Invoice Validation 170

Figure LXXI Prepayment Invoice Validation Status 171

Figure LXXII Prepayment Invoice Payment 172

Figure LXXIII Prepayment Invoice Apply 173

Figure LXXIV Prepayment Invoice Payment Status 174

Figure LXXV Applying Pre-payment with Standard Invoice 175

table of figures5
Table of Figures

Figure LXXVI Applying Pre-payment with Standard Invoice 176

Figure LXXVII Applying Pre-payment Header 177

Figure LXXVIII Applying Pre-payment Lines 178

Figure LXXIX Applying Pre-payment Distribution 179

Figure LXXX Applying Pre-payment Actions 181

Figure LXXXI Applying Pre-payment Validation 182

Figure LXXXII Applying Pre-payment Status 183

Figure LXXXIII Apply/Unapply Pre-payments 184

Figure LXXXIV Apply/Unapply Pre-payment Lines 185

Figure LXXXV Pre-payment Applied Status 186

Figure LXXXVI Invoice Validation & Create Accounting 187

Figure LXXXVII Payment Batches Templates Selection 207

Figure LXXXVIII Payment Batches Templates Attributes 208

Figure LXXXIX Payment Batches Templates Process Automation 209

Figure XC Payment Batches Process Requests 210

table of figures6
Table of Figures

Figure XCI Payment Batches Build 212

Figure XCII Payment batches Modify 214

Figure XCIII Payment batches Review 215

Figure XCIV Payment batches Rebuild 217

Figure XCV Payment batches Rebuild Review 218

Figure XCVI Payment Process Request Status 220

list of abbreviations
List of Abbreviations

A-I-A Appropriation in Aid

AIE Authority to Incur Expenditure

AP Accounts Payable

AWP Annual Work Plans

BD Budgeting Supplies Department

BPG Budget Procedural Group

BPR Business Process Re-Engineering

BPS Budget Policy Statement

BSC Budget Steering Committee

BSP Budget Strategy Paper

CBK Central Bank of Kenya

CMM Cash Management Module

CoA Chart of Accounts

EFT Electronic Funds Transfer

ERD External Resources Department

EXU Exchequer Unit

GL General Ledger

GoK Government of Kenya

GPAY Government Payment System

ICT Information, Communication and Technology

IFMIS Integrated Financial Management Information System

list of abbreviations1
List of Abbreviations

IPPD Integrated Personal Payroll Data

KRA Kenya Revenue Authority

MDG Millennium Development Goals

MOF Ministry of Finance

MPER Ministerial Public Expenditure Reviews

MTC Ministerial Tender Committee

MTEF Medium Term Expenditure Framework

P2B Plan to Budget

P2P Procure to Pay

PBB Programme Based Budgeting

PFM Public Financial Management

PO Purchase Order

PPOA Public Procurement Oversight Authority

PR Purchase Requisition

PS Permanent Secretary

R2C Revenue to Cash

R2R Record to Report

RFP Request For Proposal

RFQ Request For Quotation

VAT Value added Tax

overview of procure to pay
Overview of Procure-to-pay

1.1Introduction

Procure-to-Pay is the end to end process consisting of procurement of goods and services to payment of the supplier for the goods delivered or services performed.

1 1 overview of procure to pay
1.1 Overview of Procure-to-pay

 It may include a basic procurement process for low value items:

Manual purchase requisitions and purchase orders to procure items

Receipts that are matched to invoices when they are delivered

Payments

 It may also entail a more complex cycle for high value items which is more commonly used by the government:

Suppliers are determined by different sourcing rules (e.g. RFQs and Open Tender)

Items are received into inventory according to supplier advanced shipping notifications

Invoices are created from the inspection process and paid with scheduled payment runs that remit the funds directly into the suppliers’ bank accounts

1 2 procure to pay overall process
1.2 Procure-to-Pay Overall Process
  • Lesson 1: Overview
  • Lesson 2: Setting up Suppliers
  • Lesson 3: Documents – Requisitions
  • Lesson 4: Documents – Purchase Orders
  • Lesson 5: Receiving
  • Lesson 6: Invoice Entry
  • Lesson 7: Payments
  • Lesson 8: Integration with General Ledger
  • Lesson 9: Key setups
  • Lesson 10: Key setup reports
procure to process at a glance
Procure-to-Process at a Glance

R2R

P2P

REQUISITIONS

RECEIVING/ QC/Inspection

JOURNALS

RFQs

Transfer

To

INVOICES

POSTING

QUOTE

General

Ledger

PAYMENTS

UPDATED

ACCCOUNT

BALANCES

PURCHASE

ORDERS

purchase orders
Purchase Orders

PO

HEADER

CATALOG,

QUOTES

LINES

REQUISITION

POOL

SHIPMENTS

PURCHASE ORDER

PRIOR

PURCHASES

DISTRIBUTIONS

receiving
Receiving

DELIVERY

RECEIPT ROUTING

RECEIVING

invoice entry
Invoice Entry

INVOICE

BATCH

INVOICES

INVOICES

DISTRIBUTIONS

INVOICES

LINES

VALIDATED

APPROVED

ACCOUNTED

payment process
Payment Process

BATCH PAYMENT

SINGLE PAYMENT

PAYMENTS MANAGER

QUICK PAYMENT

1

SELECT INVOICES

PAY IN FULL

2

BUILD PAYMENTS

3

REVIEW / MODIFY

MANUAL

SUPPLIER PAYMENTS

4

RE-BUILD

5

FORMAT PAYMENT

slide23

2.0 Develop Procurement Plan

The requirement for procurement planning is aimed at ensuring smooth implementation of projects/service delivery as well as completely eliminating pending bills.

This process is currently manually performed and involves the department users in the ministries forecasting their needs for goods and services for the year

In the target process, the consolidated annual procurement plan shall be prepared by the procurement unit in the system (Procurement officer completes the template). It will be approved by the tender committee and the head of the procuring entity and where applicable by the board of directors or a similar body

slide27

3.0 Manage and Record Requisition

  • and Purchase
  • The Manage and Record Purchase process consists of creating the purchase requisition identifying the goods and services to be procured based on the procurement plan.
  • There will be a standard electronic purchase requisition and purchase order form available to the appropriate users in the ministries.
  • There is an electronic approval process with automated workflow with delegated approvers with different levels of approval for different thresholds.
  • The purchase requisition must be created and approved before the purchase order can be created
  • Currently there are 7 different procurement methods:
  • Open Tender , Request for Quotation (RFQ) , Request for Proposal (RFP), Direct, Specially Permitted, Low Value &
  • Restricted.
  • IFMIS will be a fully automated with eProcurementsystem
3 2 requisition and purchase process at a glance
3.2 Requisition and Purchase Process at a Glance

Create Purchase Order

Determine Need

Create Requisition

Assign Buyer

Approve Requisition

  • Enter Online Web Requisition
  • Create Internal Requisition
  • Use Item Catalog
  • Use Requisition Templates
  • Review Buyer Workload
  • Assign Unassigned Requisitions
  • Use Approval Hierarchy
  • Use Direct Supervisor Relationships
  • Review/Update Requisition
requisition
Requisition

Header

REQUISITION

HEADER

Line

LINES

DISTRIBUTIONS

3 3 requisition key data elements process
3.3 Requisition Key Data Elements (Process)
  • HEADER
  • Operating Unit
  • Requisition number
  • Preparer
  • Status
  • Type
  • LINE
  • Item, Description, Category
  • UOM, Quantity, Price, Need-by-date
  • Destination type, Organization, Location, Buyer
  • Notes – Buyer, Receiver
  • DISTRIBUTIONS
  • Quantity
  • Charge Account
to check funds
To Check Funds

Figure I To Check Funds

requisition headers
Requisition Headers

Figure II Requisition Headers

requisition headers1
Requisition Headers

Figure III Requisition Headers

requisition lines
Requisition Lines

Figure IV Requisition Lines

requisition distributions
Requisition Distributions

Figure V Requisition Distributions

accounting for requisition distribution line
Accounting for Requisition Distribution Line
  • In the Account field choose following segments appropriately, in below explanation find sample values from above example)
  • Class : Recurrent/Development/Deposit/Revenue (0 )
  • Vote : The Ministry for which you entering Invoice (107)
  • Administrative : Vote followed by Sub vote and Head in Sub vote (000000000)
  • Source of Funding : Select Account for which you are raising Invoice (00000000)
  • Programme : The Ministry from which receiving funds for Payment (000000)
  • Economic Item : For which program the Invoice is paying (0000000)
  • Geographical Location : Need to select for which Department the Invoice is Charging (0000000)
  • Future : Future Use (000)
requisition approval
Requisition Approval

Figure VI Requisition Approval

requisition approval process
Requisition Approval Process

Supply Chain Management Assistant

1

Senior Supply Chain Management Officer

2

AIE Holder

3

Finance Officer

4

requisition approval flow
Requisition Approval Flow

Figure VII Requisition Approval Flow

requisition approval flow1
Requisition Approval Flow

Figure VIII Requisition Approval Flow

requisition reports
Requisition Reports

* Printed Requisitions Report

* Purchase Requisition Status Report

* Requisition Activity Register

* Cancelled Requisitions report

printed requisitions report
Printed Requisitions Report

Sample output of Printed Requisitions Report

purchase requisition status report
Purchase Requisition Status Report

Sample output of Purchase Requisition Status Report

requisition activity register
Requisition Activity Register

Sample output of Requisition Activity Register

cancelled requisitions report
Cancelled Requisitions report

Sample output of Cancelled Requisitions report

suppliers
Suppliers

 Set up suppliers in the Suppliers form to record information about individuals and companies from whom you purchase goods and services.

 You can also enter employees whom you reimburse for expense reports.

 When you enter a supplier that does business from multiple locations, you store supplier information only once, and enter supplier sites for each location.

setting up suppliers
Setting up Suppliers

STAR

INDUSTRIES LIMITED

SUPPLIER

SITES

NAIROBI

MOMBASA

CONTACTS

setting up suppliers site
Setting up Suppliers Site

STAR

INDUSTRIES LIMITED

SUPPLIER

SITES

NAIROBI

MOMBASA

PURCHASING SITE

PURCHASING & PAY SITE

TERMS & CONDITIONS

TERMS & CONDITIONS

PAYMENT METHOD

PAYMENT METHOD

supplier creation
Supplier Creation

Figure IX Supplier Creation

supplier type
Supplier - Type

Figure X Supplier - Type

supplier setup steps
Supplier – Setup Steps

Figure XI Supplier – Setup Steps

supplier tax details
Supplier – Tax Details

Figure XII Supplier – Tax Details

supplier address book
Supplier – Address Book

Figure XIII Supplier – Address Book

supplier site name
Supplier – Site Name

Figure XIV Supplier – Site Name

supplier sites
Supplier - Sites
  • Determine supplier usages as per business need:
    • Pay Site Enter Invoices and make payments for pay site
    • Purchasing Create Purchase Order(s)
    • RFQ Only Create RFQs for the site. But you can’t create POs for an RFQ only site.
supplier site address purpose
Supplier Site – Address Purpose

Figure XV Supplier Site – Address Purpose

supplier site name address and ou s
Supplier Site Name, Address and OU’s

Figure XVI Supplier Site Name, Address and OU’s

supplier contact details
Supplier - Contact Details

Figure XVII Supplier - Contact Details

supplier bank account and assignment details
Supplier – Bank Account and Assignment Details

Figure XVIII Supplier – Bank Account and Assignment Details

supplier attach supplier bank information
Supplier – Attach Supplier Bank Information

Figure XIX Supplier – Attach Supplier Bank Information

supplier site account information
Supplier Site – Account Information

Figure XX Supplier Site – Account Information

description of the accounting segments
Description of the Accounting Segments
  • In the Account field choose following segments appropriately, in below explanation find sample values from above example)
  • Class : Recurrent/Development/Deposit/Revenue (0 )
  • Vote : The Ministry for which you entering Invoice (107)
  • Administrative : Vote followed by Sub vote and Head in Sub vote (000000000)
  • Source of Funding : Select Account for which you are raising Invoice (00000000)
  • Programme : The Ministry from which receiving funds for Payment (000000)
  • Economic Item : For which program the Invoice is paying (0000000)
  • Geographical Location : Need to select for which Department the Invoice is Charging (0000000)
  • Future : Future Use (000)
supplier site receiving details
Supplier Site – Receiving Details

Figure XXI Supplier Site – Receiving Details

supplier payment details
Supplier – Payment Details

Figure XXII Supplier – Payment Details

supplier payment details site level
Supplier – Payment Details Site Level

Figure XXIII Supplier – Payment Details Site Level

supplier invoice details
Supplier – Invoice Details

Figure XXIV Supplier – Invoice Details

employee as supplier
Employee as Supplier
  • Payables uses employee information to create and update employee type supplier records.
  • You can then pay employees for expense reports and invoices
  • For example, Employees are created as Suppliers with 3 sites
  • - HOME for Allowance
  • - PTY CASH for Adv/Imprest
  • - PTY CASH ACTUAL for Actual Expenses
  • - Default values for all TABS other than Bank
employee as supplier1
Employee as Supplier

Figure XXV Employee as Supplier

employee as supplier payable site
Employee as Supplier (Payable Site)

Figure XXVI Employee as Supplier (Payable Site)

employee as supplier site
Employee as Supplier (Site)

Figure XXVI Employee as Supplier (Site)

purchase order types
Purchase Order Types

STANDARD

PURCHASE

ORDER

PLANNED

PURCHASE

ORDER

BLANKET

PURCHASE

AGREEMENT

CONTRACT

PURCHASE

AGREEMENT

One-time purchases

Long term commitment

to buy as per tentative

delivery schedules

Long term agreement

with price and discount

break-ups

Standard Terms and

Conditions which can be

later applied to any

Purchasing Documents

structure of a purchase order
Structure of a Purchase Order

HEADER

LINE

1

LINE

2

SHIPMENT

SHIPMENT

2

SHIPMENT

1

DISTRIBUTION

1

DISTRIBUTION

2

DISTRIBUTION

2

DISTRIBUTION

1

purchase order process flow
Purchase Order Process Flow

PO

HEADER

CATALOG,

QUOTES

LINES

MANUAL

REQUISITION

POOL

AUTO-CREATE

SHIPMENTS

PURCHASE ORDER

PRIOR

PURCHASES

DISTRIBUTIONS

standard purchase order
Standard Purchase Order
  • One header per purchase order
  • Operating Unit, PO Number, Supplier,
  • Supplier Site, PO Type, Date, Status, Total

PO

HEADER

  • One or many lines per purchase order
  • Goods or service
  • Item, Purchasing Category, UOM, Quantity
  • Need-by-date, Promise date

LINES

  • One or many shipments for every line
  • Delivery details – Ship-to, Quantity, Shipment date
  • Receiving controls, Invoice matching options

SHIPMENTS

  • One or many distributions for every shipment
  • GL Account, Quantity
  • Reference to requisition

DISTRIBUTIONS

standard purchase order header
Standard Purchase Order - Header

Figure XXVIII Standard Purchase Order - Header

standard purchase order header1
Standard Purchase Order - Header

Figure XXIX Standard Purchase Order – Header - DFF

standard purchase order lines
Standard Purchase Order - Lines

Figure XXX Standard Purchase Order - Lines

standard purchase order lines dff
Standard Purchase Order – Lines DFF

Figure XXXI Standard Purchase Order – Lines DFF

standard purchase order shipments
Standard Purchase Order – Shipments

Figure XXXII Standard Purchase Order – Shipments

standard purchase order match option
Standard Purchase Order – Match Option

Figure XXXIII Standard Purchase Order – Match Option

standard purchase order distribution
Standard Purchase Order - Distribution

Figure XXXIV Standard Purchase Order - Distribution

po approval process
PO Approval Process

SCMO raise

LPO/LSO

1

Head SCMO

Notified

2

AIE Holder

Notified

3

4

Finance Officer

Notified

standard purchase order approve
Standard Purchase Order - Approve

Figure XXXV Standard Purchase Order - Approve

po approval process1
PO Approval Process

Figure XXXVI PO Approval Process

po approval forward process
PO Approval Forward Process

Figure XXXVII PO Approval Forward Process

po approval notification
PO Approval Notification

Figure XXXVIII PO Approval Notification

approved purchase order
Approved Purchase Order

Figure XXXIX Approved Purchase Order

purchasing reports
Purchasing Reports

* PO output of Communication

* Printed Purchase Order (Landscape/Portrait)

* Purchasing Activity Register

* pen Purchase Order (By Buyer / By Cost Center)

* Cancelled Purchase Orders

* Buyer’s Requisition Action Required

* Overdue Supplier Shipments Report

po output of communication
PO output of Communication

Sample output of PO output of Communication

purchase order landscape portrait
Purchase Order (Landscape/Portrait)

Sample output of Printed Purchase Order (Landscape/Portrait)

purchasing activity register
Purchasing Activity Register

Sample output of Purchasing Activity Register

open purchase order by buyer by cost center
Open Purchase Order (By Buyer / By Cost Center)

Sample output of Open Purchase Order

(By Buyer / By Cost Center)

cancelled purchase orders
Cancelled Purchase Orders

Sample output of Cancelled Purchase Orders

buyer s requisition action required
Buyer’s Requisition Action Required

Sample output of Buyer’s Requisition Action Required

overdue supplier shipments report
Overdue Supplier Shipments Report

Sample output of Overdue Supplier Shipments Report

slide105

4.0 Manage Received Paper Documents

  • Manage Received Paper Documentinvolves the scanning of paper forms, imaging documents and upload of these in the system.
  • This allows for effective content and document management, and provides a solution to effectively track hard copies of documents (office related documents and files e.g. Word, Excel, PowerPoint, PDFs, emails) and store in electronic format.
  • This provides a uniform approach for the users in the various ministries to capture, manage, store, preserve and deliver information in the physical documents electronically. Some examples of paper documents to be scanned and uploaded include supplier invoice and the inspection certificate.
slide109

Document Attachment Form

Figure XL Document Attachment Form

slide110

5.0 Record Goods Receipt; Approve and

  • Schedule Payment
  • This sub-process includes all the activities involved in receiving goods provided by the supplier. From the delivery and receipt of goods, the inspection and acceptance process and recording the goods receipt in the system.
  • It also supports the return of delivered goods to the supplier if they fail to meet the inspection criteria and specifications.
  • After the goods have been successfully accepted into store, the Supplier will be notified and provide an invoice leading to the payment process.
  • This sub process will be broken into:
  • Delivery/ Receipt and Acceptance of Goods and Inspection
  • Invoice Processing
5 2 receiving process
5.2 Receiving Process

DELIVERY

RECEIPT ROUTING

RECEIVING

receiving process
Receiving Process

SUPPLIER

REQUISITION

PURCHASE ORDERS

APPROVED

DESTINATION

INSPECTION

RECEIVE

receiving options
Receiving Options

RECEIPT

ROUTING

RECEIVE

OPTION

DESTINATION

TYPE

STEP1 RECEIVE

STEP2 DELIVER

RECEIVING

STANDARD

STEP1 RECEIVE

STEP2 INSPECT

STEP3 DELIVER

INSEPCTION

REQUIRED

RECEIVING

INVENTORY,

EXPENSE

DIRECT

DELIVERY

STEP1 RECEIVE

& DELIVER

standard receipt
Standard Receipt

DELIVERY

RECEIPT ROUTING

RECEIVING

direct delivery
Direct Delivery

DELIVERY

RECEIPT ROUTING

RECEIVING

inspection required
Inspection Required

DELIVERY

RECEIVING

RECEIPT ROUTING

receiving tolerances
Receiving Tolerances
  • Set receiving tolerances for quantities and for delivery timing (dates)

 Determine what actions occur when the receipt is outside of the tolerance

* NONE

* REJECT

* WARNING

 Define receiving tolerances at the following levels:

* Organization,

* Item,

* and/or Purchase Order

substitute receipts
Substitute Receipts

* When defining items in Oracle Inventory, identify items that substitute for each other

* Control the receipt of substitutes by supplier, item and order

Yes

Receive item Binstead of A

Is B a validsubstitute?

Delivery

Return

No

unordered receipts
Unordered Receipts

* Receive items for a supplier even if no corresponding purchase order exists

* Control this feature based on item, supplier and organization

Yes

Unorderedreceipt

Match to PO?

Delivery

No

Requires matching or return

5 3 purchase order receipt
5.3 Purchase Order - Receipt

Figure XLI Purchase Order - Receipt

purchase order receipt header
Purchase Order – Receipt Header

Figure XLII Purchase Order – Receipt Header

purchase order receipt line
Purchase Order – Receipt Line

Figure XLIII Purchase Order – Receipt Line

purchase order receipt
Purchase Order - Receipt

Figure XLIV Purchase Order - Receipt

purchase order receipt inspection
Purchase Order – Receipt Inspection

Figure XLV Purchase Order – Receipt Inspection

purchase order receipt inspection1
Purchase Order – Receipt Inspection

Figure XLVI Purchase Order – Receipt Inspection

5 4 receiving reports
5.4 Receiving Reports

* Expected Receipts Report

* Receipts Adjustment Report

* Receipt Traveler

* Receiving Account Distribution Report

* Receiving Exceptions Report

* Receiving Transactions Register

expected receipts report
Expected Receipts Report

Sample output of Expected Receipts Report

receipts adjustment report
Receipts Adjustment Report

Sample output of Receipts Adjustment Report

receipt traveler report
Receipt Traveler Report

Sample output of Receipt Traveler

receiving account distribution report
Receiving Account Distribution Report

Sample output of Receiving Account Distribution Report

receiving exceptions report
Receiving Exceptions Report

Sample output of Receiving Exceptions Report

receiving transactions register
Receiving Transactions Register

Sample output of Receiving Transactions Register

supplier invoice processing overview
Supplier Invoice Processing Overview

Validate / Approve Invoice

Enter Supplier

Enter Invoice

Pay Invoice

A/P

100,000

60,000

10,000

30,000

Transfer Accounting Information to General Ledger

Create AccountingEntries

invoice processing steps
Invoice Processing Steps

Create

Journal Entries

Enter Supplier

Pay

Invoice

Enter Invoice

Standard

Prepayment

Credit Memo

Debit Memo

Expense Report

Withholding Tax

Invoices

Payments

Manual

Quick

Payment Batch

invoice structure
Invoice Structure

HEADER

  • Type, Supplier, Site, PO Number
  • Payment Terms, Total Amount,
  • Currency, Payment Method
  • Total Tax, Liability Account

LINE

 A new concept called “Invoice Lines”

is introduced and accommodated

in Invoice data model.

DISTRIBUTION

  • Type, Amount, Account
  • Tax, Track as an asset
invoice batches
Invoice Batches

* Use invoice batches to proactively manage invoice entry

* Enter invoice defaults at the batch level that override system or supplier site defaults for all invoices in the batch

* Maximize accuracy by tracking variances between the control invoice count and total, and the actual invoice count and total resulting from your invoice entry

invoice batches processing navigation

Invoice Batches Processing Navigation

Figure XLVI Invoice Batches Processing Navigation

invoice batch enter new
Invoice Batch – Enter NEW

Figure XLVIII Invoice Batch – Enter NEW

invoice entry in batch
Invoice Entry in Batch

Figure XLIX Invoice Entry in Batch

invoice header
Invoice Header

Figure L Invoice Header

invoice lines
Invoice Lines

Figure LI Invoice Lines

invoice distribution
Invoice Distribution

Figure LII Invoice Distribution

accounting for invoice distribution line
Accounting for Invoice Distribution Line
  • In the Account field choose following segments appropriately, in below explanation find sample values from above example)
  • Class : Recurrent/Development/Deposit/Revenue (0 )
  • Vote : The Ministry for which you entering Invoice (107)
  • Administrative : Vote followed by Sub vote and Head in Sub vote (000000000)
  • Source of Funding : Select Account for which you are raising Invoice (00000000)
  • Programme : The Ministry from which receiving funds for Payment (000000)
  • Economic Item : For which program the Invoice is paying (0000000)
  • Geographical Location : Need to select for which Department the Invoice is Charging (0000000)
  • Future : Future Use (000)
invoice processing status
Invoice Processing Status

Figure LIII Invoice Processing Status

invoice actions
Invoice Actions

Figure LIV Invoice Actions

slide154

Invoice Validation

Figure LV Invoice Validation

invoice validation status
Invoice Validation Status

Figure LVI Invoice Validation Status

invoice processing with po

Invoice Processing with PO

Figure LVII Invoice Processing with PO

invoice processing with po header
Invoice Processing with PO Header

Figure LVIII Invoice Processing with PO Header

invoice processing with po header1
Invoice Processing with PO Header

Figure LIX Invoice Processing with PO Header

slide159

Invoice Processing with PO Match

Figure LX Invoice Processing with PO Match

invoice processing with po match lines
Invoice Processing with PO Match Lines

Figure LXI Invoice Processing with PO Match Lines

invoice processing with po validation
Invoice Processing with PO Validation

Figure LXII Invoice Processing with PO Validation

invoice processing with po status
Invoice Processing with PO Status

Figure LXIII Invoice Processing with PO Status

employee invoice
Employee Invoice

 We can create the Invoice for the supplier like normal supplier with the below Three (3) Sites.

* HOME for Allowance

* PTY CASH for Adv/Imprest

* PTY CASH ACTUAL for Actual Expenses

prepayment invoice
Prepayment Invoice

Figure LXIV Prepayment Invoice

prepayment invoice header
Prepayment Invoice Header

Figure LXV Prepayment Invoice Header

prepayment invoice1
Prepayment Invoice

Figure LXVI Prepayment Invoice

prepayment invoice lines
Prepayment Invoice Lines

Figure LXVII Prepayment Invoice Lines

prepayment invoice distribution
Prepayment Invoice Distribution

Figure LXVIII Prepayment Invoice Distribution

accounting for invoice distribution line1
Accounting for Invoice Distribution Line
  • In the Account field choose following segments appropriately, in below explanation find sample values from above example)
  • Class : Recurrent/Development/Deposit/Revenue (0 )
  • Vote : The Ministry for which you entering Invoice (107)
  • Administrative : Vote followed by Sub vote and Head in Sub vote (000000000)
  • Source of Funding : Select Account for which you are raising Invoice (00000000)
  • Programme : The Ministry from which receiving funds for Payment (000000)
  • Economic Item : For which program the Invoice is paying (0000000)
  • Geographical Location : Need to select for which Department the Invoice is Charging (0000000)
  • Future : Future Use (000)
prepayment invoice status
Prepayment Invoice Status

Figure LXIX Prepayment Invoice Status

slide171

Prepayment Invoice Validation

Figure LXX Prepayment Invoice Validation

prepayment invoice validation status
Prepayment Invoice Validation Status

Figure LXXI Prepayment Invoice Validation Status

prepayment invoice payment
Prepayment Invoice Payment

Figure LXXII Prepayment Invoice Payment

prepayment invoice apply
Prepayment Invoice Apply

Figure LXXIII Prepayment Invoice Apply

prepayment invoice payment status
Prepayment Invoice Payment Status

Figure LXXIV Prepayment Invoice Payment Status

applying pre payment with standard invoice
Applying Pre-payment with Standard Invoice

Figure LXXV Applying Pre-payment with Standard Invoice

applying pre payment with standard invoice1
Applying Pre-payment with Standard Invoice

Figure LXXVI Applying Pre-payment with Standard Invoice

applying pre payment header
Applying Pre-payment Header

Figure LXXVII Applying Pre-payment Header

applying pre payment lines
Applying Pre-payment Lines

Figure LXXVIII Applying Pre-payment Lines

applying pre payment distribution
Applying Pre-payment Distribution

Figure LXXIX Applying Pre-payment Distribution

accounting for invoice distribution line2
Accounting for Invoice Distribution Line
  • In the Account field choose following segments appropriately, in below explanation find sample values from above example)
  • Class : Recurrent/Development/Deposit/Revenue (0 )
  • Vote : The Ministry for which you entering Invoice (107)
  • Administrative : Vote followed by Sub vote and Head in Sub vote (000000000)
  • Source of Funding : Select Account for which you are raising Invoice (00000000)
  • Programme : The Ministry from which receiving funds for Payment (000000)
  • Economic Item : For which program the Invoice is paying (0000000)
  • Geographical Location : Need to select for which Department the Invoice is Charging (0000000)
  • Future : Future Use (000)
applying pre payment actions
Applying Pre-payment Actions

Figure LXXX Applying Pre-payment Actions

applying pre payment validation
Applying Pre-payment Validation

Figure LXXXI Applying Pre-payment Validation

applying pre payment status
Applying Pre-payment Status

Figure LXXXII Applying Pre-payment Status

apply unapply pre payments
Apply/Unapply Pre-payments

Figure LXXXIII Apply/Unapply Pre-payments

apply unapply pre payment lines
Apply/Unapply Pre-payment Lines

Figure LXXXIV Apply/Unapply Pre-payment Lines

pre payment applied status
Pre-payment Applied Status

Figure LXXXV Pre-payment Applied Status

invoice validation create accounting
Invoice Validation & Create Accounting

Figure LXXXVI Invoice Validation & Create Accounting

invoice validation
Invoice Validation

 Online Validation

- Select the Invoice

- (B) Actions

- Select Validate

- (B) OK

 Run the 'Invoice Validation' program from the Submit Requests screen

(N) Other > Requests > View

manual holds on payment of invoice
Manual Holds on Payment of Invoice

There are 3 types of manual holds that you can use to prevent payment of an invoice:

- Invoice Hold

- Supplier Hold

- Scheduled Payment Hold

invoice accounting
Invoice Accounting

 Online Accounting

- Select the Payment

- (B) Actions

  • Create Accounting

 Draft

 Final

    • Final Post

Select the Create Accounting method and

- (B) OK

 Run the 'Payables Accounting Process' program from the Submit Requests screen

(N) Other > Requests > View

adjusting and cancelling invoices
Adjusting and Cancelling Invoices
  • You can adjust invoice distributions if an invoice has not yet been accounted. After it has been accounted, you can create new and or reversing distributions.

 To cancel an invoice, click on cancel in the <Actions> menu. The invoice is cancelled by creating reversing distribution amounts. You can only cancel unpaid invoices

5 6 invoice related reports
5.6 Invoice Related Reports

* Batch Control Report

* Invoice On Hold Report

* Invoice Register Report

* Invoice Validation Report

* Invoice Aging Report

* Invoice Approval Status Report

batch control report
Batch Control Report

Batch Control Reports

invoice on hold reports
Invoice On Hold Reports

Invoice On Hold

invoice register reports
Invoice Register Reports

Invoice Register

invoice validation report
Invoice Validation Report

Invoice Validation Report

invoice aging report
Invoice Aging Report

Invoice Aging Report

invoice approval status report
Invoice Approval Status Report

Invoice Approval Status Report

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6.0 Process Payments

The payment program processes payments of the invoice, after the invoice has been scheduled for payments. It generates a payment schedule which is a list of all suppliers to be paid, the amount and the payment method. The payment schedule flat file will be transmitted to the Central Bank of Kenya (CBK) through an intermediary payment system which is currently known as GPAY.

Before the payments are executed, the department user will have to specify payment specifications to determine the invoices to be picked up by the program. They include the supplier IFMIS numbers, date range of invoices to be picked up, and payment methods. These specifications can be created and saved for use by an automated batch process as well.

Currently this process involves manual entry of the payment information into the GPAY system. In the target process, this will be automated

batch payment options
Batch Payment Options

PAYMENT MANAGER

BATCH PAYMENT

SINGLE PAYMENT

1

SELECT INVOICES

QUICK PAYMENT

2

BUILD PAYMENTS

PAY IN FULL

3

REVIEW / MODIFY

4

RE-BUILD

MANUAL

SUPPLIER PAYMENTS

5

FORMAT PAYMENT

payment options
Payment Options

MANUAL

COMPUTER - GENERATED

First paid, outside the system

Recorded in the system and

Applied to invoices, later

Special number series can

be reserved

Can be paid Individually

Invoice Selected

Payment is generated by system

and applied to selected invoices

Special number series can

be reserved

Can be paid Individually or Batch

payment batches
Payment Batches
  • Payment Batch is used to make payments using Oracle Payables. Checks can be printed after the payment is made.

 Payment batches help in making payment of multiple invoices at a time. A number of selection criteria’s help in choosing the invoices to be paid

payment batch steps
Payment Batch Steps

1

SELECT INVOICES

Payment batch begins with

Invoice selection criteria,

reserve the payment document

and goes through series of steps

from selection to formatting and

finally confirm the payment batch

2

BUILD PAYMENTS

3

REVIEW / MODIFY

4

RE-BUILD

5

FORMAT PAYMENT

payment batch invoice selection
Payment Batch – Invoice Selection

1

SELECT INVOICES

  • Provide selection criteria
  • Pay Group
  • Payment Priorities
  • Supplier
  • Pay Through Date
  • Maximum Outlay
  • Minimum Outlay
  • Zero Payment

2

BUILD PAYMENTS

3

REVIEW / MODIFY

4

RE-BUILD

5

FORMAT PAYMENT

payment batches templates selection
Payment Batches Templates Selection

Figure LXXXVII Payment Batches Templates Selection

payment batches templates attributes
Payment Batches Templates Attributes

Figure LXXXVIII Payment Batches Templates Attributes

payment batches templates process automation
Payment Batches Templates Process Automation

Figure LXXXIX Payment Batches Templates Process Automation

payment batches process requests
Payment Batches Process Requests

Figure XC Payment Batches Process Requests

payment batch build
Payment Batch – Build

1

SELECT INVOICES

  • Build Payments
  • Group invoices
  • For each payment document

2

BUILD PAYMENTS

3

REVIEW / MODIFY

4

RE-BUILD

5

FORMAT PAYMENT

payment batches build
Payment Batches Build

Figure XCI Payment Batches Build

payment batch review modify
Payment Batch – Review / Modify

1

SELECT INVOICES

2

BUILD PAYMENTS

  • Modify Payments
  • Review payments
  • Modify payment amount
  • Prevent payment to supplier
  • Prevent payment of a
  • particular invoice
  • Add invoice that’s not selected

3

REVIEW / MODIFY

4

RE-BUILD

5

FORMAT PAYMENT

payment batches modify
Payment batches Modify

Figure XCII Payment batches Modify

payment batches review
Payment batches Review

Figure XCIII Payment batches Review

payment batch re build
Payment Batch – Re-Build

1

SELECT INVOICES

2

BUILD PAYMENTS

3

REVIEW / MODIFY

  • Re-Build
  • Re-compute payments
  • Print preliminary payment
  • register and review

4

RE-BUILD

5

FORMAT PAYMENT

payment batches rebuild
Payment batches Rebuild

Figure XCIV Payment batches Rebuild

p ayment batches rebuild review
Payment batches Rebuild Review

Figure XCV Payment batches Rebuild Review

payment batch format confirm
Payment Batch – Format & Confirm

1

SELECT INVOICES

2

BUILD PAYMENTS

3

REVIEW / MODIFY

  • Format and Confirm
  • Print payment documents
  • Confirm document numbers
  • Release payable document
  • Final payment register

4

RE-BUILD

5

FORMAT PAYMENT

payment process request status
Payment Process Request Status

Figure XCVI Payment Process Request Status

stop and void payments
Stop and Void Payments

IS

PAYMENT DOCUMENT

IN POSSESSION?

IS

PAYMENT DOCUMENT

RECORDED?

VOID

PAYMENTS

STOP

PAYMENTS

VOID

PAYMENTS

stop payments
Stop Payments
  • When you record a stop payment, the payment status is updated to Stop Initiated.

 When you release a stop payment, the payment status is updated to Negotiable

void payments
Void Payments

 When you void a payment, the status of the invoice is reset to Unpaid and the accounting entries for the payment are reversed.

 You can void a payment from the actions window. Only when the payment is voided can an invoice be cancelled.

payment accounting
Payment Accounting

 Online Accounting

- Select the Payment

- (B) Actions

    • Create Accounting

 Draft

 Final

      • Final Post

Select the Create Accounting method and

- (B) OK

  • Run the 'Payables Accounting Process' program from the Submit Requests screen

(N) Other > Requests > View

6 1 payment related reports
6.1 Payment Related Reports

* Cash Requirement Report

* Preliminary Payment Register Report

* Final Payment Register Report

* Separate Remittance Advice Report

* Missing Documents Report

* Payment Batch Controls Report

* Stopped Payments Report

* Void Payments Report

* Payment Register Report

* Payment Exceptions Report

cash requirement report
Cash Requirement Report

Cash Requirement Report

preliminary payment register report
Preliminary Payment Register Report

Preliminary Payment Register Report

final payment register report
Final Payment Register Report

Final Payment Register Report

separate remittance advice report
Separate Remittance Advice Report

Separate Remittance Advice Report

missing documents report
Missing Documents Report

Missing Documents Report

payment batch controls report
Payment Batch Controls Report

Payment Batch Controls Report

stopped payments report
Stopped Payments Report

Stopped Payments Report

void payments report
Void Payments Report

Void Payments Report

payment register report
Payment Register Report

Payment Register Report

payment exceptions report
Payment Exceptions Report

Payment Exceptions Report

slide237

7.0 Address Vendor Inquiries;

  • Handle Disputes and Exceptions

This sub-process involves addressing any issues or questions the supplier has in the procurement process. Inquiries can be received by the ministries through the phone and email. After review, the inquiry would be recorded in the system. The department user will capture during the initial vendor/ supplier inquiry all information necessary to categorize, route, and resolve the issue

slide238

Address Vendor Inquiries;

  • Handle Disputes and Exceptions
slide239

Address Vendor Inquiries;

  • Handle Disputes and Exceptions
slide240

8.0 Perform PTP Reconciliations and

  • Period End Close Activities
  • This sub process is a summary of the year-end procedures and activities related to Procure to Pay that need to be performed. It includes all facets of reporting, classifying and managing financial transactions within IFMIS for month and year end close processes. It involves finalizing the accounting records for one fiscal year and preparing the accounting records for the upcoming fiscal year. This action is accomplished via manual and automated processes throughout the fiscal year.
  • This task is accomplished by an in-depth review and analysis of the transactions posted to the general ledger accounts to ensure that these activities are in accordance with statutory requirements of the constitution
  • The high level activities include:
  • Analyze and reconcile PTP G/L accounts
  • Perform Period End Close Activities
  • General Activities: ( Closing of Open Purchase Orders, Closing of Encumbrances, System inventory stock reconciliation with physical stock)
slide241

Perform PTP Reconciliations and

Period Close Activities

slide242

Perform PTP Reconciliations and

Period Close Activities

8 2 period close checklist
8.2 Period Close Checklist
  • Transfer and import data from PO and AP
  • Close the period for PO and AP
  • Revalue foreign currency balances
  • Verify all journals are posted
  • Reconcile account balances
  • Run Trial Balance and other reports
  • Close the period and open the next period
overview of importing journal entries
Overview of Importing Journal Entries

Automatic or

Manual

Transfer in

Summary or Detail

Journal Import

AP, PO

GL_INTERFACE

Post

GL_JE_BATCHES

GL_JE_HEADERS

GL_JE_LINES

GL_BALANCES

posting journals

Account Balance

Prepost $500

Journal entry $ 25

After post $525

Enter journal

Report and inquire

on updated

account balances

Post journal

Posting Journals
8 3 p2p close processes
8.3 P2P Close Processes

Create Journal Entries

Assets

General Ledger

Post Mass Additions/

Depreciation

Oracle Subledger

Accounting

Transfer Transactions to GL

GL Interface

Inventory

Mass Additions Create

Payables Transfer to General Ledger

Receipt Accruals - Period End

Purchasing/ iProcurement

Payables

8 4 overview of the p2p period close
8.4 Overview of the P2P Period Close

Close the period in AP

Prepare for period close

Run Invoice Validation/ Review and resolve holds

Run Payables Accounting Process to Transfer

Run PO Period Accruals

Reconcile AP activity for the period

Close the PO period

Post journal entries in GL

8 5 reconcile ap to gl

March Accounts Payable Trial Balance

+ April Posted Invoice Register

  • April Posted Payment Register
  • - April Accounts Payable Trial Balance

= 0

8.5 Reconcile AP to GL
8 6 payables reports
8.6 Payables Reports

Accounts Payable Trial Balance:

Verify that total Accounts Payable liabilities in Payables equal those in the General Ledger. To reconcile these balances you can compare the cumulative total liability provided by this report with the total liability provided by your General Ledger.

Accrual Rebuild Reconciliation Report:

Analyze the balance of the Accounts Payable (A/P) accrual accounts. You can accrue both expense and inventory purchases as you receive them. When this happens, you temporarily record an Accounts Payable Liability to your Expense or Inventory A/P Accrual accounts. When Payables creates the accounting for the matched and validated invoice, Payables clears the A/P accrual accounts and records the liability from the supplier site. Run this report at period end.

Accrual Reconciliation Report:

The same report as the Accrual Rebuild Reconciliation Report with one key difference. The Accrual Rebuild Reconciliation Report creates records in a temporary table which are used as the basis for the report. The Accrual Reconciliation Report simply uses the records created by the Accrual Rebuild Reconciliation Report as a basis for the report. Run this report during the accounting period.

reports continued
Reports (continued)
  • Payables Accounting Entries Report: Use this report to review and analyze accounting entries in the Payables sub-ledger. You can request the report for a specific run of the Payables Accounting Process or the Payables Transfer to General Ledger program. Using the report parameters, you can produce a detailed or summary listing of the accounting information you want to review. The report also lists in detail any transactions that have been accounted with error and all entries that could not be transferred to the General Ledger Interface. When a transaction is accounted with errors, use the Update Accounting Entries window to update any invalid accounts.
  • Posted Invoice Register: Use the Posted Invoice Register to review accounting lines, summarized by invoice, that have been transferred to the General Ledger. Because it presents amounts that have been charged to liability accounts, this report is valid only for an accrual ledger. The Posted Invoice Register is primarily a reconciliation tool. Use this report along with the Posted Payment Register and the Accounts Payables Trial Balance Report to reconcile balances between Payables and your General Ledger.
reports continued1
Reports (continued)
  • Unaccounted Transactions Report:
  • Identify and review all unaccounted invoice and payment transactions and see the reason that Payables cannot account for a transaction. Run this report after you have run the Payables Accounting Process. The report will then show only transactions that had problems that prevented accounting. You can then correct the problems and resubmit the accounting process. Note that this report does not include invoices that have no distributions.
  • Un-invoiced Receipts Report:
  • Run before the Receipt Accrual - Period-End process. With this report, you can review all or specific un-invoiced receipts for both period end and online accruals. Un-invoiced receipts are goods and services you have received that your supplier did not invoice yet. This report indicates exactly what you have to accrue and for what amount, and helps you analyze your receipt accrual entries. The accrual amount is the difference between the quantity received and the quantity billed multiplied by the unit price of the item.