Business Services

Procure to Pay
Reports
Delivered by:
Cindi Stinebaugh & Susie Geswein

June 2009
 Business Services
Course Content
• Objectives
• Resources
• Open PO Report
• Blocked Invoice Report
• GR/IR
• Open Commitments
• Vendor Invoices
 Business Services
Course Objectives
Upon completion of this course you will:
• Understand where to find resources on procure
to pay
• Understand how purchase orders flow through
the FM ledger
• Understand the procure to pay and how to run
them
 Business Services
Resources
• Purchasing Home Page— http://www.purdue.edu/purchasing/
• SRM Instruction Manual—
http://www.purdue.edu/purchasing/SRM/srmInstructionsManual.html
– Section 11—Open PO Report
– Section 13—Blocked Invoices
– Section 14—Purchase Order Commitments
• Process
• Instructions
– Section 15—Procure to Pay
• Showcase
• Postings
• Reports Process
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Resources
• B@P—
https://www2.itap.purdue.edu/bs/BPP/public/view_moduleInf
ormation.cfm?view=mod83&name=Placing%20an%20Order
• Business Manager Task Checklist (Purchasing
Tab) — http://www.purdue.edu/BS-
BA/Training/index.html
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Procure to Pay Postings
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Reviewing Reports
• Order of Review
• Expectations for this fiscal year
• Use online report, but make notes on paper
report
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Open PO Report
• This report will display all purchase orders (by
line item) that have not been confirmed in SRM
(including partial receipts). This report is closely
related to T-code ME23N, which is where users
can see details for the orders found on this report.
– Exception: Guy Brown (1521), University Stores,
Printing Services orders are excluded from this report
because they do not need to be received in the system.
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Open PO Report
• ZFIR_SRM_OPEN_PO_SUM
– This report is also available in the portal under
Financial Systems>Reports>AP> Open Purchase
Order Summary
– Report should be reviewed by Business Office and
if necessary the Receiver
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Open PO Report
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Open PO Report
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Open PO Report
• Review list for your area
• Confirm in the system, those PO’s that items
were received in acceptable condition and
payment should be made.
• DO NOT confirm in the system any PO’s that
have NOT been received
• http://www.purdue.edu/onepurduehelp/nav/fin
ance%20_fi_/purchasing/file562/index.htm
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Open PO Report
• Benefits of keeping up with this report
– will remove/stop these PO’s from showing up on
the blocked invoice list unless they are out of
tolerance
– will help keep outstanding commitments under
control
– Timely movement from commitment to expense
allows appropriate overhead to follow
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ME23N—SRM Purchase Order
• Account Assignment Tab
• Purchase Order History Tab
• Commitments for this PO
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Blocked Invoice Report
• 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
• ZFI_BLOCKED_INVOICE
– Report should be reviewed by the Business Office
and Requisitioner if necessary
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Blocked Invoice Report
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Blocked Invoice Report
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Blocked Invoice Report
• Review the list and determine if ok to pay
– Compare to Open PO Report to see if issues are
outstanding
– Confirmation needed in system?
– Credit memo needed from vendor?
– Form 26 needed?
• How to relieve a blocked invoice—Section 13
 Business Services
Blocked Invoice Report
• Benefits of keeping up with this report
– Should clear GRIR issues for that PO
– Timely vendor payments
• Keep shipments coming
• Help with negotiating better pricing in the future
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GRIR Clearing Report
• ZFI_GR_IR_CLEARING
• GRIR=Goods Receipt Invoice Receipt
• Purchasing/AP manages this report for the
University, but this can be a good resource for
business offices
– Resolution comes from the BO
• If items are in the GR/IR account, there could
be an affect on your financial statements
 Business Services
GRIR Clearing Reports
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GRIR Clearing Reports
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GRIR Clearing Report
• Should be reviewed by Business Office and
Receiver if necessary
– Review outstanding entries (oldest first)
– Use ME23N to see what has happened (double
click PO #)
– Compare against Open PO & Blocked Invoice
notes
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GRIR Clearing Report
• Report shows Action=Invoice Receipt (IR)
Needed
– Scenario 1—Goods Receipt Qty=1, Invoice
Receipt Qty=1, Credit Memo Qty=1
• If item was returned to vendor, and no replacement
being provided, process RETURN DELIVERY in SRM
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GRIR Clearing Report
• Report shows Action=Invoice Receipt (IR)
Needed
– Scenario 2—Goods Receipt Qty=3, No Invoice
Receipt
• Determine actual quantity physically received.
• If no goods actually received, then process RETURN
DELIVERY in SRM
• If Goods Receipt Qty=3 is accurate, then contact vendor
for invoice for Qty=3
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GRIR Clearing Report
• Report shows Action=Goods Receipt (GR)
Needed
– Scenario 1=Goods Receipt Qty=3, PO Qty=3,
Invoice Receipt Qty=5
• Check notes from Blocked Invoice Report. See if
actions are in process to clear
• This scenario should have already been worked on
Blocked Invoice Report
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GRIR Clearing Report
• Report shows Action=Goods Receipt (GR)
Needed
– Scenario 2=No Goods Receipt, PO Qty=1, Invoice
Receipt Qty=1
• Check notes from Blocked Invoice Report. See if
actions are in process to clear
• This scenario should have already been worked on
Blocked Invoice Report
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GRIR Clearing Report
• Report shows Action=Quantity Issue
– Scenario 1=Goods Receipt Qty=5 > Invoice
Receipt Qty=3
• Verify quantity actually received
– If GR is correct, contact vendor for remaining invoice receipt
qty.
– If GR is incorrect, process RETURN DELIVERY for the
difference
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GRIR Clearing Report
• Report shows Action=Quantity Issue
– Scenario 2= Invoice Receipt Qty=4 > Goods
Receipt Qty=2
• If GR correct, contact vendor for credit memo or
additional items
• If GR incorrect, confirm additional qty in SRM
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GRIR Report
• Benefits of keeping up with this report
– Account balances may not be accurate, if there are
blocked invoices, or situations where the GR/IR is
out of balance.
– Promotes work time efficiency
– Unpaid vendors might delay delivery of other open
POs
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Open Commitments
• This report lists open po commitments
• FMRP_RFFMEP1AX—
(variant=COMMITMENTS)
• This report should be reviewed by the
Business Office
– Review the issues from your other lists and mark
off this list so you do not review the same issues
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Open Commitments
• This report should catch two-way match
vendors with open commitments (i.e. Guy
Brown, Printing Services)
• Open Commitment Instructions—Section 14
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Open Commitments
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Vendor Invoice Report
• Will show all invoices and credit memos
posted to a given range of cost objects, which
should make it easier for staff to determine
what invoices are still aging – or open – and
not yet paid out to the vendor.
• B@P News article—
http://www.purdue.edu/business/bpnews/News_Releases/Buyi
ng/General_Info/newVendorInvoiceReport.html
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Vendor Invoice Report
• ZFI_VENDOR_INVOICES
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Vendor Invoice Report
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Vendor Invoice Report
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Closing Accounts
• These reports have been added to the Closing
Accounts Checklists to avoid unexpected
expenses after account is closed, ensure all
commitments have been relieved, as well as
ensuring that vendors can still be paid.
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Questions?