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Procure-to-Pay Showcase. Presented by: Cindi Stinebaugh, Purchasing Gayle Stetler, Accounts Payable & Travel. Agenda. Purchase to Pay Overview Importance of an Accurate Purchase Order (PO) Form 26 (Request to Change Order) ‘Confirmation/Goods Receipt’ Overview

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procure to pay showcase


Presented by:

Cindi Stinebaugh, Purchasing

Gayle Stetler, Accounts Payable & Travel

  • Purchase to Pay Overview
  • Importance of an Accurate Purchase Order (PO)
  • Form 26 (Request to Change Order)
  • ‘Confirmation/Goods Receipt’ Overview
  • Current Process (3-Way Match)
  • GR/IR Overview
  • To Be Process (2-way Match) Update
  • How an Invoice gets Blocked/Tolerance
  • New Blocked Invoice Report
  • New Blocked Invoice Process
procure to pay overview
Procure-to-Pay Overview






SRM Shopping Cart

Purchase Order


(Goods Receipt)



  • Step 1 –A Shopping Cart is created through SRM
  • Step 2 – Once a Shopping Cart is fiscally approved and sourced it is converted into a Purchase Order (PO) and places the order with the selected Vendor
  • Step 3 – When the vendor delivers the items ordered, a Confirmation is processed in SRM and posted in R3 as a Goods Receipt (GR) Step 4 - The Invoice is received from the vendor and posted in R3
  • Step 5 – Payment is made once the invoice is matched to the PO and the goods receipt.
importance of an accurate po
Importance of an Accurate PO
  • Price
  • To expedite the processing of PO’s in Purchasing, indicate how pricing was determined (i.e. website - give the date, phone or email pricing – give contact name and phone number). List in internal note field.
  • Quoted prices - List Quote number on the Purchase Order in vendor text and attach quote to shopping cart– the vendor should invoice at the quoted price. This helps avoid the blocked invoice list and the business office of preparing a F26.
importance of an accurate po5
Importance of an Accurate PO
  • The end user may have already checked the price, we just need to close the circle and list it on the PO. If pricing is current and details listed on PO, Purchasing does not need to recheck pricing, expediting the PO to the vendor.
  • If there is no price information listed, Purchasing is required to verify pricing. This may delay the PO in being released to the vendor.
  • If a vendor list vendor is used, Purchasing will not see the PO. If prices were not checked, a F26 may be required. This may be to either change the PO or release a blocked invoice.
importance of an accurate po cont
Importance of an Accurate PO- cont
  • Quantity
    • Accurate quantities help avoid blocked invoices, out of balance situations in the GR/IR account and preparing a F26.
  • Changes to a PO (i.e. qty, price descriptions, account assignment) in SRM can only be made prior to any confirmations or invoices posting. No changes may be made when an asset is assigned to PO.
  • Best practice – do not call vendor to add additional items or quantities to a PO.
goods receipt gr confirmation overview when required
Goods Receipt (GR)/Confirmation Overview (when required)
  • Important to Confirm the actual line items that are received.
  • Confirm in a timely manner, invoices posted without a Confirmation/GR will block the invoice for payment and create an out of balance situation in the GR/IR account.
goods receipt gr confirmation overview when required8
Goods Receipt (GR)/Confirmation Overview - (when required)
  • Confirm the actual number of items received, if you only receive 5 of the 10 you ordered only confirm 5.
  • All of these situations create an incorrect account balance on the departmental account.
current process 3 way match
Current Process (3-Way Match)

3 Requirements:

  • PO
  • Confirmation
  • Invoice
gr ir goods receipt invoice receipt
GR/IR (Goods Receipt/Invoice Receipt)

GR/IR Account is only out of balance when the quantities between goods receipt and invoice receipt DO NOT MATCH on a line item basis.

Expense Acct

GR/IR (Acc. A/P)

Goods Receipt =



GR/IR (Acc. A/P)

Vendor Payable

Invoice Receipt =



three scenarios affect gr ir
Three scenarios affect GR/IR
  • Goods receipt without invoice receipt
  • Invoice receipt without goods receipt
  • Goods receipt AND invoice receipt, difference in quantity
  • NOTE: New report ZFI_GR_IR_CLEARING is searchable so you can see what is in GR/IR for your area.
scenario 3 goods receipt and invoice receipt difference in quantity
Scenario 3 - Goods receipt AND invoice receipt, difference in quantity

Ordered 15 at $34.43 each

Received 11 at $34.43 each

Did you really receive 11?

Why only invoiced for 7?

Are we going to get anymore?

Invoiced 7 at $34.43 each

scenario 3 goods receipt and invoice receipt difference in quantity cont
Scenario 3 - Goods receipt AND invoice receipt, difference in quantity – cont
  • If the receiver confirmed (in SRM) a quantity more than what was physically received, have the receiver do a return delivery If the receiver knows there will NOT be additional items physically received the receiver may check the last delivery box. This will relieve the commitment and will not allow additional confirmations. Do NOT check the last delivery box if you expect to receive additional items.
to be process 2 way match
To Be Process (2-Way Match)

2 Requirements:

  • PO
  • Invoice
blocked invoices
Invoices will be blocked for payment for one (or more) of three reasons on a line item basis:

Price is out of tolerance

Quantity is out of tolerance

Goods are not confirmed

Review the PO History with tcode ME23N for details

Blocked Invoices
  • Tolerance for price has been set for 15% above the line item price, up to $100.
  • Tolerance for quantity has been set for 0%, meaning that quantity must match exactly on a line item basis or payment will be blocked.
  • Find Out of Tolerance guidelines here:
blocked invoices price out of tolerance
Blocked Invoices – Price out of tolerance

Ordered 3 at $18 each for a total of $54

Line 1

Invoiced for 3 at $46 each for a total of $138

This invoice is greater than 15% more than this line item, therefore, out of tolerance and payment is blocked.

blocked invoices quantity out of tolerance
Blocked Invoices – Quantity out of tolerance

Ordered 12 at $6.50 each


12 at $6.50 each

Invoiced for 15 at $6.50 each

This invoice is out of tolerance for quantity, but not price – payment blocked

blocked invoices not received
Blocked Invoices – Not Received

Ordered 2 at $1,415.99

Invoiced 2 at $1,415.99

No Goods Receipt!!

Payment blocked

blocked invoice process
Blocked Invoice Process
  • Report created for departments to identify their own blocked invoices
    • ZFI_Blocked_Invoice
    • Searchable by many data elements
      • Fund Center
      • Vendor
  • View PO using tcode ME23N to determine blocking reason (Drill down from report)
  • New process outlined at B@P
    • Form 26 replaces email to to release OT invoices
f26 process updates
F26 Process Updates
  • Additional process for the F26 – authorize the release of a blocked payment
  • Headings renamed include Relieve Partial Remaining Commitment, and Authorize Release of Blocked Payment
  • Explanation needs to be very specific
    • Give part number or describe item
    • Indicate line item(s)
    • Give dollar amounts and quantities
    • Indicate if the vendor needs a copy of the change
    • Answer the question, why is the F26 needed?
    • Example,
why is this important
Why is this important?
  • Account balances are not accurate, if there are blocked invoices, or situations where the GR/IR is out of balance.
  • Avoid blocked invoices
  • Avoid preparing F26’s
  • Promotes work time efficiency
  • Unpaid vendors might delay delivery of other open POs
  • GR/IR issues could remain unresolved