CENTRALIZED DUPLICATE

IDENTIFICATION &
RECOVERY TEAM

Overview

HP Confidential

© 2004 Hewlett-Packard Development Company, L.P.

The information contained herein is subject to change without notice
 Revision History
Document Name: Procure to Pay Overview

Author: Sowmya Subramanian

Date of Release:

Approved by:

Section
Revision No Date of Revision Revised Revised by Approved by Reason for Change
26th May’10

Will be approved
1. Slide 28 and 29 Soumya.R by Salin EDS integration
Slide# 27, 28,
29, 30, 37, 38
2. 20th Oct 11 and 39 Shubha Yadav TL/SMEs Process Update

March 2, 2020 HP Confidential 2

Objectives
Topics Covered :

1. Components of the OF & P2P cycle

2. Impact of Duplicates on HP
3. Difference between Duplicate & double booking
4. System Controls
5. Reports used by the Team
6. Criteria for duplicate identification
7. Follow up activities of the Team

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 - P2P process within the OF
Recap

Cycle
CUSTOMER
Places order 1.HP Sales INTRA-
Office CORPORATE
Goods Desptched

2.Order
Places order Transacti
Fulfillment ons
processed
contacts
by

Order & invoice is sent to Procures supplies from HP Factory

HP Factory Procures supplies from External

Supplier
Makes
Payment ACCOUNTS Identifying
Pay- Accounted by RECEIVABLES Supplier&
ment agreement

Done by

PROCURE TO
Bank/ Treasury Verifies Invoices & gives instruction to Pay the Supplier PAY

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Recap: Procure to Pay Cycle

9 1
Payment is made
Requestor raises the
to the vendor
8 requisition
2
Invoice verified
Source is determined
and accounted in
HP’s books

P2P CYCLE
7 3
Vendor sends Vendor is Selected
invoice to HP

6 5 4
Goods/Service Received Purchase order Purchase order
by the Requestor is monitored is created
HP Confidential 5
Objectives
Topics Covered :

1. Components of the OF & P2P cycle

2. Impact of Duplicates on HP
3. Difference between Duplicate & double booking
4. System Controls
5. Reports used by the Team
6. Criteria for duplicate identification
7. Follow up activities of the Team

HP Confidential 6
 Vendor Queries
A few instances when the Vendor contacts HP
For Invoice related Queries
Status of Invoices sent by Vendor
Address where the Invoices have to be sent
Mode of sending the Invoices

Payment related Queries

Non-receipt of Payment/ Short Payment
Payment made to wrong Bank Account
Payment in wrong currency
Receipt of wrong Payment
For informing change in name, address, Bank Details
This is also one of the instances where HP contacts the Vendors

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Impact of duplicates
There are millions of dollars being paid to vendors across the globe by the
various HP entities.

Itis likely that instances of duplicate

bookings & payments as discussed
earlier, occur on a regular basis.

The liability of the Company gets

inflated due to the duplicates, thus
depicting a wrong picture.

Duplicates pose a potential risk to HP as this contributes to financial loss

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Duplicates – A matter of concern

Duplicates are a serious concern for the Accounts Payables

Also this issue was raised by the Internal Auditors in 2003

Audit Comment –:”Inadequate controls over the detection and

prevention of duplicate payments have led to financial loss”

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Formation of the CDIR team
A Centralised team to perform duplicate check was formed on 1’st April
2004, called as Centralized Duplicate Identification & Recovery team
(CDIR)

The Goal

To have visibility and control on duplicate payments across AP Inventory

and Non-Inventory

HP Confidential 10
Objectives
Topics Covered :

1. Components of the OF & P2P cycle

2. Impact of Duplicates on HP
3. Difference between Duplicate & double booking
4. System Controls
5. Reports used by the Team
6. Criteria for duplicate identification
7. Follow up activities of the Team

HP Confidential 11
 Duplicate bookings
Let us have a look at those situations which erroneously increase the
liability of HP

1. Duplicate booking : The same invoice gets processed twice in

the Vendor’s Account with different details keyed in by the
Processor.

Cause – Negligence/ Error on the part of the processor at the time of

booking the invoice.
Failure of System duplicate checks.

Note: If both of the above bookings do not get detected but are picked
up for payment, then this results in duplicate payment

See next slide for an example of such a case -

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Sample of Duplicate booking ( 1) in SAP

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Sample of Duplicate booking ( 2) in SAP

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Image of Duplicate booking ( 1)

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Image of Duplicate booking ( 2)

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Double Bookings
2. Double Booking : More than one invoice for the same product/service
gets processed in the Vendor Account with different details provided by the
vendor or buyer

Cause: Negligence/ Error on the part of the vendor at the time of raising
the invoice
Failure of System duplicate checks

In rare cases, the vendor might deliberately bill HP twice with fraudulent
intentions.

Note: If both of the above invoices do not get detected but are picked up
for payment, then this results in double payment

See next slide for an example of such a case

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Sample of Double booking ( 1) in SAP

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Sample of Double booking ( 2) in SAP

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Image of Double booking ( 1)

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Image of Double booking ( 2)

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Objectives
Topics Covered :

1. Components of the OF & P2P cycle

2. Impact of Duplicates on HP
3. Difference between Duplicate & double booking
4. System Controls
5. Reports used by the Team
6. Criteria for duplicate identification
7. Follow up activities of the Team

HP Confidential 22
Duplicate checks in SAP
SAP has a check in place to detect duplicate postings of documents at
the time of document processing.

SAP will not allow a document to get posted if there is another

document with an exact match of the following fields:
Company code
Currency
Gross Amount
Vendor Number
Document date
Reference number

Note – If you are trying to post an invoice which is identical to an

already posted invoice with respect to the above details, then SAP
throws an error & does not allow you to proceed further.

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Duplicate checks in SWAN

SWAN checks for duplicates in the pre processing robot.

A duplicate is detected if two or more documents in the same region

have the same invoice number and vendor number.

Reason why system checks fail :

Even if one of the fields (being checked for duplicates) is slightly

different, SAP/SWAN will not detect a duplicate.

HP Confidential 24
Objectives
Topics Covered :

1. Components of the OF & P2P cycle

2. Impact of Duplicates on HP
3. Difference between Duplicate & double booking
4. System Controls
5. Reports used by the Team
6. Criteria for duplicate identification
7. Follow up activities of the Team

HP Confidential 25
Reports used by the CDIR Team
Suspect Duplicate Report -
 This report is developed by CFIT.

 There is one open item report and 3 closed item reports .

 The Open item report is run across all the groups at the same time.

 Closed Items reports are run for every region separately– APAC,
EMEA & Americas which is synchronized with the payment run timings
of the respective regions.

 Open items & closed items report are extracted on a daily basis.

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Reports used by the CDIR Team
Features of the Suspect Duplicate Report

Built on Five fields & Eight criteria

Checks for duplicates booked across various instances and company

codes within the groups.

Compares the data on a particular date (loading date) with past 180
days data and with the current day’s data, in the Oracle Data base.

The query run in the Database looks for suspect duplicates based on
the criteria defined, later these reports will be generated in GMB which
is SDDB_reports

Note – This report looks at duplicate bookings & hence acts as a tool
for prevention of duplicate payments

HP Confidential 27
contd….
The data of all the documents posted in the various
SAP instances for the relevant company codes of each
group are extracted and fed into an oracle database. The
database checks the documents within the list of all
documents posted on that day and the documents
posted/paid/ cleared in the past 180 days (rolling).
Fcm server
US1

LH1/D7C LIST OF
SUSPECT
DUPLICATES
FI1

etc
Database
ZFAPSUSD – Report which helps the data flows from SAP to Oracle application
HP Confidential 28
What is a group
1. Group – A set of company codes grouped together
based on the regions, proximity of scanning hubs/Post
Rooms.

TheSD report compares the documents of different

company codes which exist within each group.

Within each group there can be more than one instance

used, for processing documents.

E.g – Group 1 is in the APAC Region & includes Co Codes

AU00, AU80, AUA4, AUA7,AUA9, AUB1,AUB2 & NZ00.
The instances are – FI1, US1, D7C & LH1
HP Confidential 29
 Group Region Co code Country Instance
Group Region Co code Country Instance
CH00 Switzerland FI1

AU00 Australia FI1 FR00 France FI1

AU80 Australia FI1 3 EMEA FR40 France FI1
FR85 France LH1
AUA4 Australia LH1 FR45 France D7C
1 APAC AUA7 Australia LH1 PR80 Puerto Rico FI1
DE00 Germany FI1
AUA9 Australia LH1
DE04 Germany FI1
AUB1 Australia LH1 DE25 Germany LH1
AUB2 Australia LH1 4 EMEA
DE50 Germany D7C
DE60 Germany FI1
NZ00 Newzealand FI1 DE96 Germany FI1
AR00 Argentina US1 DE98 Germany FI1
BR10 Brazil US1 NL20 Netherland FI1
GB00 UK FI1
BR20 Brazil US1 GB01 UK FI1
BR40 Brazil D7C GB92 UK FI1
GBA5 UK LH1
CA00 Canada US1
GBC5 UK LH1
CA40 Canada D7C HU00 Hungary LH1
5 EMEA
CA61 Canada D7C HU10 Hungary FI1
HU30 Hungary LH1
CA64 Canada LH1 IE00 Ireland FI1
CL00 Chile US1 IE06 Ireland FI1
CO00 Columbia US1 IE20 Ireland FI1
IE98 Ireland FI1
CR00 Costarica US1 IN00 India FI1
CR01 Costarica US1 6 APAC
IN01 India FI1
IN20 India FI1
EC00 Equador US1
IN30 India FI1
MX00 Mexico US1 KR00 Korea FI1
7 APAC
MX40 Mexico D7C KR10 Korea FI1
MY00 Malaysia FI1
MX91 Mexico LH1 MY20 Malaysia FI1
8 APAC
2 Americas MX92 Mexico LH1 MY40 Malaysia FI1
MY99 Malaysia FI1
PE00 Peru US1
SG00 Singapore FI1
PR20 Puerto Rico D7C SG10 Singapore FI1
9 APAC
US00 US US1 SG45 Singapore LH1
SG20 Singapore FI1
US99 US D7C ES00 Spain FI1
USA4 US US1 ES03 Spain FI1
USA7 US LH1 ES20 Spain LH1
10 EMEA ES86 Spain LH1
USB2 US LH1 ES87 Spain LH1
USB7 US LH1 ES88 Spain LH1
ES89 Spain LH1
USC2 US D7C
PH00 Philippiness FI1
USC5 US LH1 27 APAC
PH01 Philippiness FI1
USC6 US LH1 28 EMEA
AE00 Dubai FI1
USC7 US D7C
30 EMEA ZA00 South Africa FI1
USC8 US LH1
ZA03 South Africa FI1
USP1 US US1 33 APAC VN00 Veitnam FI1
VE00 Venezuela US1 36 APAC
ID00 Indonesia FI1
ID99 Indonesia FI1
VE20 Venezuela US1
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Reports used by the CDIR Team
ZFAPDUPD2/ZFI_APDUPD2:

 This report is used to identify duplicate payments booked within a

company code.
 The report is extracted in SAP on a daily basis.
 It picks up payments with duplicate amounts and invoice date.

 This report compares against past 6 months data.

 This report is available in FI1, US1, LH1 and in D7C instances.

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The ZAAPTRAN Report

This report is used to identify the duplicates which falls under J criteria with
in the groups ,Which is done by using an MS access tool

Features of ZAAPTRAN report:–

1. The report is extracted in SAP on a daily basis ( FI1& US1instances )
2. The report is pulled the day after the invoice posting.
3. The report is run for all co. codes based on groups
4. The report consist of all the invoices posted in the previous day
5. This report compares against past 6 months data

3/2/2020 HP Confidential 32
Duplicate Invoice Payment Detection
J Criteria Snapshot (ZAAPTRAN)

• Suspected Duplicate report from SAP is used as a source

file to identify duplicates
• Criteria’s used to map duplicates:
• Vendor Name
• Vendor Number
• Invoice Amount (LC)
• Posting Date
• 180 days data in the SDR report is mapped against the
current dates data in the SDR report
• A string of Vendor name, Vendor number, amount is
established for 180 days and current date’s data
• Using exact match logic current date’s data is mapped
against 180 days data
• Finally the duplicates are highlighted along with the
posting date
• The duplicates are checked in SAP and the invoices are
cancelled

33
Objectives
Topics Covered :

1. Components of the OF & P2P cycle

2. Impact of Duplicates on HP
3. Difference between Duplicate & double booking
4. System Controls
5. Reports used by the Team
6. Criteria for duplicate identification
7. Follow up activities of the Team

HP Confidential 34
Criteria and Fields
Invoice Invoice
Criteria No Invoice Amount Date Vendor Search Term Purchase Order No Severity

A X X X X 1

B X X X 2

C X X X 3

D X X 4

E X X 5

F X X may/may not be same 6

H X X may/may not be same 7

I X X X 8

X X
J 9

Note: 1) The Purchase order field will be applicable only for the Criteria ‘I’
2) In Criteria ‘H’ and ‘F’ vendor search term may/may not be same.

3/2/2020 HP Confidential 35
Objectives
Topics Covered :

1. Components of the OF & P2P cycle

2. Impact of Duplicates on HP
3. Difference between Duplicate & double booking
4. System Controls
5. Reports used by the Team
6. Criteria for duplicate identification
7. Activities of the Team

HP Confidential 36
Activities
 SDDB Report extraction to identify the duplicate booking and payment.
 ZFAPDUPD2 Report extraction from SAP to identify the duplicate payment.
 ZAAPTRAN Report extraction to to identify the duplicate booking.
 Identification of duplicate bookings and payments.
 Prevention of duplicate payments.
 Recovery of duplicate payments.
 Root cause analysis for the duplicates identified and communication of these causes to the
respective teams.
 Weekly reports on the number and value of duplicate bookings / payments detected for AP
Errors.
 Report metrics on the number and value of duplicate bookings / payments detected and resolved.
 Identification of the vendors who can be black listed and communicate the same to IP.
 Check for duplicate vendor and inform the Vendor Data Maintenance team to block the duplicate
vendor account.
 Educating the vendors and the respective accounting team on their errors
 Contact the Debit balance recovery team to contact the Controllership for any write off cases by
providing the necessary details.
 Handling HPSM and GMB queries.
 Vendor clean up.

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LEARNING CHECK

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Questions –
1. Define Duplicate booking
2. Duplicates increase the liability of HP – True or False
3. If the vendor sends 2 invoices for the same service & if both are
booked, then it results in …. booking ( duplicate or double)
4. Follow up activities undertaken by the team before the duplicate is
paid are called prevention activities (true or false)
5. CDIR Team contact Controllership for write off ( true or false)
6. A duplicate is detected in SWAN, if two or more documents in the
same region have the same invoice number and vendor number. (
true or false).
7. The Purchase order field will be applicable only for the Criteria ‘I’ (
true or false)

HP Confidential 39
Solution
1. A single invoice getting booked twice in the Vendor Account due to
error/negligence on the part of the processor = duplicate booking
2. Duplicates increase the liability of HP – True or False
3. If the vendor sends 2 invoices for the same service & if both are
booked, then it results in …. booking ( duplicate or double)
4. Follow up activities undertaken by the team before the duplicate is paid
are called prevention activities (true or false)
5. CDIR Team contact Controllership for write off ( true or false)
6. A duplicate is detected in SWAN, if two or more documents in the
same region have the same invoice number and vendor number.
(true or false)
7. The Purchase order field will be applicable only for the Criteria ‘I’ (true
or false)

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HP Confidential 41