Purchasing and Accounts

Payable Training
 Agenda
• Procure to Pay Process Walk-Through
• Examples to Prevent Matching Issues and Pre-
mature encumbrance (PO) closing
• List Current Issues
• Next Steps
Procure to Pay Process - Workflow
 Procure to Pay Process – BATCH Processes

Purchasing Processes
1.Quick source requisitions into
POs
2.PO Budget Check
7 Days a Week
3.PO Document Tolerance
1.10AM to 10:15AM
4.PO Dispatch
2. 1:30PM to 1:45PM
5.Publish Outgoing Message to 3. 4:30PM to 4:45PM
SciQuest
4. 7:00PM to 7:15PM
Procure to Pay Process – BATCH Processes

Accounts Payable Processes

1.AP Voucher Build - 8:00PM
2.AP Voucher Matching - 8:05PM
3.AP Voucher Budget Check - 10:00PM
4.AP Voucher Doc Tolerance - 10:30PM
5.AP Voucher Post - 11:00PM
6.AP Payment Post - 11:30PM
7.AP Voucher Post - 1:00AM

7 Days a Week
Procure to Pay Process – BATCH Processes

Additional Batch Processes

1.PO Reconciliation - 1:15AM
2.PO Budget Check - 1:30AM
3.REQ Reconciliation - 1:45AM
4.REQ Budget Check - 2:00AM

7 Days a Week
 Procure to Pay Process Walk Through
1. Requisition
2. Purchase Order
3. Receipt
4. Voucher
 Matching: Purchasing & AP’s
Relationship
• Matching is the process used to compare AP
Vouchers with Purchase Orders and Receipts
(if receiving required), to ensure that GRU only
pays for the goods and services that have
been ordered and received
• 2-way match – AP voucher & PO
• 3-way match – AP voucher, PO & Receipt
 Matching: Purchasing & AP’s
Relationship

• Good Relationships require good

communication

• Decisions made by each department can affect

the other
 Purchasing Responsibilities
• Ensure PO is setup correctly
– Receiving Options
• Required
• Optional
• Do not receive
– Matching Options
• Full
• No match
• All lines on a PO should have the same Matching
requirement
Example of Mis-matched Matching Options on a PO

Match Status on the PO Header?

 Accounts Payable Responsibilities
• Understand how creating a PO Voucher can affect
Matching results
• Understand what the Match Exception means
BEFORE deciding to override it, and what the effect
will be if it is overridden
• If necessary, request the Buyer to correct the PO
Matching and/or Receiving settings BEFORE paying
the invoice
 Accounts Payable Responsibilities
• Creating Voucher user Worksheet option
– Vendor Location and Address is pulled from the
Vendor – NOT the PO
– Adjust the Quantity or Amount BEFORE copying
the PO/Receipt into the voucher
Example – Reducing Qty BEFORE Copying to Vchr
Note: This will help reduce pre-mature un-encumbering of POs.
 Example of Vendor Addresses
• Entering the
Vendor ID on the
Add a New Value
page, will cause
the Default
Vendor Location
and Address from
the Vendor File to
populate on the
Voucher
 Example 1: Override OR Not to Override
• PO Qty = 5
• Vchr Qty = 5
• Receiving Required, but No receipt created
• Match exception: Vchr quantity does not equal sum of receipt qty; No
receipts found

If you override, the PO status will get updated to Partially Matched, but will NOT get
updated to Matched.
•The PO will NOT be eligible to be closed. The Purchasing Department will have to
manually force it to close.
•The PO CAN be vouchered again, since the PO Match Status was not updated to
Matched. However, Doc Tolerance will get an exception, which is a good double
check, but will also have to be overridden.
 Example 2: Override OR Not to Override

• PO Qty = 5; Unit Price = $20.00

• Vchr Qty = 5; Unit price = $17.00
• Receiving NOT Required
• Match exception: Unit price does not equal PO unit price

• First, determine that the invoice amount is correct.

• If you determine that the final price is less than the PO amount, then it is OK to
override the Match exception.
• Then, the PO Match Status is updated to MATCHED, since the full Qty was
vouchered.
• The PO will be eligible to be closed, without further intervention.
 Example 3: Override OR Not to Override

• PO Location: Main – Address Seq 1

• Vchr Location: Remit – Address Seq 2
• Match exception: Vendor does not equal PO vendor

• If you do have a valid reason (the invoice), to use a different vendor addresss,
then it is OK to override the Match exception.
• Then, the PO Match Status is updated to MATCHED, since the full Qty was
vouchered.
• The PO will be eligible to be closed, without further intervention.
 Example 4: Override OR Not to Override

• PO Amount = $445.43
• Receipt Amount = $445.43
• 3 Vouchers: 1-$285.84, 2-$155.42 & 3-$4.17
• Match exception: No Receipt found, but unmatched ones exist; Vchr line
amt > Sum of received amount

• You should not override these Match Exceptions.

• Go to the voucher and associate the receipt.

• In this case, there are 3 vouchers and 1 receipt. Due to the document
association rules, the system will not automatically match them to each other.
 Example 5: Override OR Not to Override

• PO Line Amount = $31.40

• Vchr Line Amount = $6.28
• Previously Vouchered Line Amount = $31.40
• Match exception: Life to Date > Sched Amt # % ext tol

• This match exception needs to be researched, to determine the best way to

handle the match exception.
• The Match Exception tells us that the voucher amount EXCEEDS the PO
tolerance amt.
• Determine if there is a valid reason for Exceeding the PO Amount.
• Choose which action to take:
1. Override
2. Correct the voucher amount
3. Close/Delete the voucher if it is a duplicate
 Current Issues
• Incorrect category codes/account codes on requisitions
 Current Issues - Cont’d
• Electronic Credit Memos from Health eShop
Vendors

Example: PO for 5 items, the department only

received 4 of the items, and we receive a
credit memo for the 5th item
 Current Issues - Cont’d

• 998 POs are current marked as in process

• AP cannot pay them until they are not marked
in process
• Waiting for IT to run a DBI to correct them
 Current Issues – Cont’d
• Zero Dollar Lines
– Is this causing issues?
– What is the process?
– Are the requesters receiving all the lines?
 Current Issues – Cont’d
• Helpful departmental-user communications
– Keep in mind that the departmental users do not
use the same language, abbreviations or slang
that we use in everyday processing
– Be customer-service oriented
– Do not make assumptions
Current Issues – More?
 Next Steps
• Meeting with Greg & Donna on the 20th
• Resolving Current Issues
• More training/issues meetings
Thank You!