BEN Helps & P2P [PROCURE-TO-PAY] Presents “ The Procure to Pay Life Cycle”

BEN Helps&P2P[PROCURE-TO-PAY]Presents“TheProcure to Pay Life Cycle” Last Updated November 2012

Table of Contents • Purchase Orders [Creation Process]……… 3 • Managing Invoice Holds…………………..... 11 • Receipts ……………………………………… 33 • Purchase Orders [Final Close Process]…… 47 • Navigation/ On-line Inquiries ……………….. 52 • Encumbrances ……………………………….. 56 • Reporting Tools ………………………………. 63 • Online Resources ……………………………. 69

PURCHASE ORDERS “CREATION PROCESS”

Purchase Orders“Creation Process” P2P • Purchase Orders should be created via the Penn Marketplace by clicking on • The Penn Marketplace houses the most commonly required products and services from University contract and preferred suppliers. • For items not available in the Penn Marketplace for marketplace suppliers, use the link on the Penn Marketplace Home Page to create a purchase requisition. • For items not available in the Penn Marketplace for non-marketplace suppliers, use the link on the Requisitions Home Page to create a purchase requisition. P2P = P2P HELPFUL TIPS & TOOLS

Purchase Orders“Creation Process” [continued] P2P Creating a Non-Catalog Item Request • The Non-Catalog link can be accessed from multiple places in the application • Search catalogs prior to adding a Non-Catalog item to be sure your item is not being offered from another marketplace supplier P2P = P2P HELPFUL TIPS & TOOLS

Purchase Orders“Creation Process” [continued] P2P Creating Non-Marketplace Request • Item details such as item description, supplier item #, and price should be obtained from the supplier prior to creating this type of request to reduce invoice exceptions. From a Quote: • In the item description, include specific item details. [e.g.. Product name, model #ABC123, etc.]. The Quote # should be added to the ‘Additional Information’ field. P2P = P2P HELPFUL TIPS & TOOLS

Purchase Orders“Creation Process” [continued] P2P Purchase Orders for Goods/ Services • Goods billed by quantity = (Qty * Price) • Goods or services billed by amount = (Amount * 1) • Services billed by quantity = (Qty * Rate per Unit) Remember: To avoid exceptions and problems with invoices being matched incorrectly, a requisition should be created via the Penn Marketplace for suppliers that are a contract supplier [e.g. Fisher Scientific, Telrose/Office Depot, etc.] and for items not available in the hosted catalog, create a Non-Catalog item request P2P = P2P HELPFUL TIPS & TOOLS

For More Purchasing- http://www.purchasing.upenn.edu/buyinfo/guide/ • Overview of the purchasing process for newly appointed faculty and staff. • Overview of the University's authorized buying methods for equipment, supplies and services from external suppliers • University procurement and disbursement policies, guidelines, and ethical business practices faculty and staff are required to follow when making a purchase from an external supplier. • Buying tips, resources and related information for authorized BEN Buys system users and credit card cardholders. • Information related to suppliers that provide the products and services required by the University.

For More • P2P (Procure-to-Pay)-http://www.upenn.edu/p2p/purchase_order • The purchase order process can be viewed as a series of linked steps in which different participants play a role • It streamlines the typical transaction by requiring a requisitioner to be specific when ordering • Legally committing the University to funding the purchase • Allowing a supplier to deliver as requested • Enabling the University to pay invoices within 30 days 7 STEP PROCESS STEP 1- Identify Need STEP 5- Process Invoice STEP 2- Initiate Purchase STEP 6- Pay STEP 3- Issue Purchase Order STEP 7- Track and Improve STEP 4- Take Delivery/ Create Receipt

For More • Financial Training- http://www.finance.upenn.edu/ftd/documentation.shtml#buy • Learn how to navigate through the BEN Buys system and PO Manager responsibility • Use the Navigation User Guide and Quick Reference Guide • Learn the policies surrounding the requisition and purchase order process • Learn how to manage requisitions and/or purchase orders • Use the Requisitioner User Guide or the Purchase Order Manager User Guide • Understand how to create Marketplace and/or Non-Catalog Item requisitions • Use the Enhanced Penn Marketplace Guide • Understand how to research invoice information • Use the Invoice Inquiry User Guide

MANAGING INVOICE HOLDS

How do I manage an invoice on hold? • Seven Easy Steps for • Managing Holds • Click on URL sent via e-mail. • Log-on to BEN Pays Web Inbox. • Click on Web Inbox on menu or AP Invoices link to view any invoices on hold awaiting your review. • Decide ‘To pay or not to pay?’ • Place Holds Resolved markup (pay) or Route to Accounts Payable markup (don’t pay w/full explanation). • Click the appropriate markup to affix to the image. In the Comments Box, enter the reason for cancellation when invoice should be routed to Accounts Payable. Comments Box not used with Holds Resolved. • Click “OK” in the Comments Box to save markups. If an invoice is on Qty Ord or Max Ship hold and “OK” to pay… Received an Oracle Alert from apsup@exchange.upenn.edu? Ask yourself… Should invoice be PAID? If invoice should be “CANCELLED”…

Viewing the Web Inbox Steps 1 & 2- Click on the URL and Log into your MarkView Web Inbox Step 3- Click on “Web Inbox” on menu OR Click go to your web inbox AP Invoices

Current Inbox Items[Step 3 Continued] • The ‘Current Inbox Items’ lists any invoices awaiting review • Information shown includes Invoice Number, Supplier Name, PO Number, Invoice Date, and Amount • Invoice Number is a link that will open invoice for review • An e-mail notification for invoices on hold will be sent daily

Invoice Image & Work Item By clicking on the Invoice # [Step 3 Continued] Message Area Markups (stamps) available Expanded information available includes Holds, PO details, distributions (Accounting), related invoices, and document history Invoice image and manipulating the image display

Invoice Item: Message Area [Step 3 Continued] • The ‘Message Area’ at the top of the page • Provides information on the invoice holds and instructions to follow • Blue icons indicate instructions and feedback • Red icons indicate warnings or alerts

Expanded Information:Holds & PO Line Details[Step 3 Continued] Holdsdetails hold type, reason, date, and line number PO Line Details presents PO information by line on order, received, and invoiced Icon used to open and close detail information

Expanded Information: Accounting, Related PO Invoices, & History [Step 3 Continued] Accounting shows amount and distribution (account charged) Related PO Invoices links to all invoices and credit memos matched to the given PO (except EDI credit memos) Document History details all actions related to the invoice since it was scanned into MarkView

“Managing Holds Process” Step 4- Decide if the invoice is okay to pay “ WHY” is the invoice ON HOLD? An invoice can be on hold for one or more of the following reasons: • Quantity Ordered Hold {QTY ORD} • The quantity invoiced for a PO line exceeds the 10% tolerance of the quantity ordered on the PO • Maximum Shipment Hold {MAX SHIPMENT AMOUNT} • The invoice line total (Qty x Price) is greater than the PO total (Qty x Price) by $25 • Comment Requested Hold • Additional information is being requested by Accounts Payable. A response should be submitted via “Return To” stamp with a resolution • Quantity Receipt Hold {QTY REC} • Total quantity BILLED exceeds the Total quantity receipted for the PO line on any purchase order with a total greater than $5K or marked as receipt required

“Managing Holds Process”Step 5- Apply the markup After reviewing the hold reason, invoice and purchase order line, is the invoice okay to pay?… YES- Apply the “Holds Resolved stamp” to release one or all of these holds: • Qty Ordered • Max Ship Amount NO- Apply the “Route To Accounts Payable” [include a note of why invoice should be canceled in the ‘Comments’ box] Not sure yet- In “dispute” with supplier? You can apply the “Blue Sticky Note”. Add a note: Currently in dispute with supplier. Awaiting resolution. This sticky note is “For View Only” – Does NOT transition document to Accounts Payable. Once the supplier responds and an agreement is made, proceed with actions to pay or cancel the invoice.

“Managing Holds Process”Step 5- continued • Comment Requested • Used by Accounts Payable when more information or clarification is needed on the reason for cancelling an invoice • Replaces Buckslip markups • Comment Requested sends the invoice to the Buyer’s Web Inbox. • Return To • Markup used by Buyer to respond to Comment Requested • Response information is entered in Return To comment box

Blue Sticky Note- Enter information that will be for “VIEW ONLY” Green Text- Applies green bold text to image Email Document Link (new)- Email a link to the invoice image for others to review Holds Resolved (transitions invoice out of Web Inbox) Markup to *Approve* payment for invoice Comment box not required (will not be read by Accounts Payable) Route To Accounts Payable (transitions invoice to A/P) Markup to *Cancel* invoice and Comment box used to explain the reason for cancellation Comment Box will be read by Accounts Payable Print- Directly prints the image to your local printer Inbox Items: Notes, Markups, Email & Print http://www.finance.upenn.edu/ftd/documentation/benpays.pdf For More Info

Step 5- Continued Hold Resolution Grid

“Managing Holds”[continued] “For a PO Buyer that transfers within University and has PO Manager responsibility in their new role”? • This should be a short term transitional process and should only occur for “service” Purchase Orders. Supply Purchase Orders should be fully exhausted once the final invoice is processed • There should be a combined effort from [thedepartment where POs were originated and department PO Buyer transferred to] for managing lingering holds • Actions the originating department [PO was created from] should take: • Run the Open Purchase Orders by Buyer report to view POs that are still active • Run the 501. Matching Holds Report • Receipt the PO within BEN Financials. This can be done without receiving an Oracle alert. Therefore, the PO never goes on hold • Both departments should come to a resolution on payment of the invoice • In some cases, it may be necessary to change the “Buyer” on Purchase Orders • The form to request a change Buyer can be found at: http://finance.upenn.edu/comptroller/forms/#BEN

“Managing Holds Process”[Continued] “A PO Manager transfers to another department and the original PO Buyer retains PO Manager access in their new role.” • Run the 501. Matching Holds report • Report retrieves ALL invoices on hold for a specific Buyer, an entire Org or for a single Fund entered in the parameters. • Report also provides detailed information including how long an invoice has been on hold. http://www.finance.upenn.edu/ben/benfin/documentation/reportdoc/quickv/501.shtml For More Info

“Managing Holds Process”[Continued] Email Document Link • Sends e-mail with a link to the MarkView invoice image with your comments for others to review • Invoice can be viewed by other PO Managers or BEN Balances users • Reviewer CANNOT apply markups • Reviewer can apply notes using the Blue Sticky Note or Green Text Contact - The icon next to Contact opens a list of values containing all PO Managers • Select the PO Manager desired and their name & email address will populate Email - Any person’s email address can be entered, but only other PO Manager & BEN Balances users can view the invoice image **Note: Asterisk denotes a required field**

“Managing Holds Process” “For a PO Buyer who leaves the University OR Transfers within the University and DOES NOT have PO Manager responsibility in their new role”? [Continued] • An alternate assignment is processed. In addition to managing their own holds, the newly assigned PO Buyer will be responsible for managing the holds for the PO Buyer that transferred.

Manipulating the Image Display

THINGS TO REMEMBER P2P MarkView • Users should NOT set their MarkView password to be remembered each time they log in. Why? Passwords expire every 30 days, therefore your BEN Financials and MarkView passwords must be in sync. If you have the box checked, and your BEN password was changed, you will receive an error when you click “OK” to log into MarkView. = P2P HELPFUL TIPS & TOOLS P2P

Submitting Invoices for Payment P2P • To ensure timely payment to suppliers and within the specified terms, ALL invoices should be sent directly to Accounts Payable by the supplier. • DO NOTuse a highlighter on an invoice. Once scanned in the system by Accounts Payable, the data can not be read in MarkView. • E-mail alerts for invoices on hold will be sent daily • Only the Buyer (or their Alternate Assignment Designee) can approve or request cancellation of an invoice. • To access your Web Inbox at any time, bookmark the following URL: • https://benimgprd01.isc-seo.upenn.edu/markview_pr01/MVT_MV_Home.Home = = P2P HELPFUL TIPS & TOOLS P2P

Submitting C-Forms for Payment P2P AP & IDS employ the following procedures and criteria for handling C-Form exceptions, either by returning C-Forms with exceptions through Intramural Mail or electronically through BEN Pays Imaging system. • Intramural Mail: C-Forms will be sent back to the TAC Holder who embossed it. • If… • Wrong form used • Missing TAC and/or signature • TAC Card has expired • Total Amount on C-Form is greater than TAC holder limit • C-Form is a photocopy • No Vendor # on the C-Form and no W-9 attached • Information on the C-Form not typed • Fields are crossed out and typed over • White out is used on a field then typed over

Submitting C-Forms for Payment P2P [continued] • Electronically via BEN: C-Forms will be sent back to the TAC Reviewer List • If… • Missing Invoice # • Invoice # must not contain “words”. It can consist of letters and numbers • Missing Invoice Date • Total dollar amount on lines does not equal what is written on the C-Form • Invalid GL Account • Duplicate Invoice # • Name provided on C-Form doesn’t match name in BEN • SSN # on C-Form does not match number in BEN

RECEIPTS

Invoices on Qty Rec Hold “I receipted an invoice in PO Manager, why is it still on hold”? Remember: • When entering receipts, you receipt a quantity or amount against the PO Line. You do not receipt the invoice. • There is NO association between receipts and specific invoices. EXAMPLE: PO created for QTY= 25,879 There are 4 invoices on Qty Rec hold. 3 for $7,327.84 [ea] and 1 for $3,863.92. A receipt is entered for QTY= 21,983.53 [total of 3 invoices] None of the invoices go off hold because the total quantity received must equal or exceed the total quantity billed

Invoices on Qty Rec Hold • How can I verify what’s been billed and receipted on my purchase order? View the “Quantity Detail Folder” PO Manager> View/Control PO

Invoices on Qty Rec Hold[Continued] REMEMBER:Each hold and each receipt is against a specific line number on the purchase order as shown in the illustration below. Enter Receipts Screen Qty Detail Folder

Invoices on Qty Rec Hold [Continued] • You can also view what was ordered, billed & receipted on a Purchase Order from Inquiry> Invoices.

Invoices on Qty Rec Hold [Continued] “I entered a receipt and applied the Holds Resolved stamp to the invoice. Why is the hold notification still in my web inbox”? Remember: • Qty Rec holds are released in nightly batch processing. The hold will be released the night that receipts are entered in BEN. Therefore, it’s not necessary to apply a Holds Resolved stamp IF invoice is on Qty Rec hold ONLY.

Why we receipt… P2P • University’s Financial Policy #2309 requires due diligence on the part of University employees to ensure the proper receipt and inspection of purchased goods. • Departments must receipt goods and/or services for all purchase orders valued at $5,000 or greater before payment can be released to supplier. http://www.finance.upenn.edu/vpfinance/fpm/2300/2309.asp P2P = P2P HELPFUL TIPS & TOOLS

“Why can’t I enter a receipt”? I get a message ‘Field is protected Againstupdate’ in the lower corner of the screen when I try to put a check mark in the box next to the Quantity field. Entering Receipts from PO Manager This message means, there are multiple distributions on your purchase order

Entering Receiptswith Multiple Distributions If a + sign is shown and the Destination Type is “Multiple”, this indicates there were multiple distributions used on this PO. This shows the quantity on the line level. #1 In order to receipt the quantity, click on the + sign. The expanded lines are the quantities ordered per PO line/ per distribution. #2

Problem Resolution with Receipts P2P Remember: • You DO NOT receipt invoices, you receipt merchandise on a PO line. • You have the ability to view the Quantity Detail folderin PO Manager. It shows: P2P = P2P HELPFUL TIPS & TOOLS

Impact of Receipts • What’s the Impact on entering receipts? • Creates an accrual amount at the end of the fiscal year if the qty or amount receipted is MORE THAN the qty or amount billed. • The unrecorded liability for goods and services that have been received but not yet billed to the university [invoiced in BEN]. • Incorrect receipting can create an error to the Financial Statements. It is important to manage receipted POs throughout the year. To manage accruals, run the 900.Uninvoiced Receipts report.

Fiscal Year End Receipt Accruals900 Uninvoiced Receipts Report We highly recommend that the title you create includes the CNAC/ORG parameters used to run the report. These parameters are NOT shown on the parameters page as they are in other reports. REQUIRED FIELDS CNAC Required only if ORG is blank NOTE: None of the other parameters need to be entered to run this report ORG Required only if CNAC is blank OPTIONAL- Enter a dollar amount here if you want to only see accruals equal to or greater than this amount. For example, if you do not want to see any accruals for uninvoiced receipts that are less than $1,000, enter $1,000 for the Minimum Extended Value parameter REQUIRED

Fiscal Year End Receipt Accruals 900 Uninvoiced Receipts Report Continued • The report provides a preview of all accrual entries that will be posted to your school/ center’s 26-digit account in June as part of year end processing. • The accrual calculation is derived from the quantity receipted less the quantity billed times the unit price of the purchase order line Accrual = (Qty/Amt Received x Unit Price on PO) - (Qty/Amt Billed x Unit Price on PO) http://www.finance.upenn.edu/ben/benfin/documentation/reportdoc/quickv/900.shtml

900 Uninvoiced Receipts Report P2P • To better manage accruals, this report should be run monthly and receipts should be corrected by sending an email to apsup@exchange.upenn.edu. The email should include the following information: Purchase Order Number, PO Receipt number, PO Line number and what the receipted quantity should be • This report is a useful tool for managers to identify : • End users who have problems setting up purchase orders correctly • End users who enter receipts at the time the PO is created or before goods and services have actually been received P2P = P2P HELPFUL TIPS & TOOLS

PURCHASE ORDERS “FINAL CLOSE PROCESS”

FINAL CLOSE PO PROCESS • “What are reasons a purchase order should be FINAL CLOSED”? • To remove a remaining encumbrance balance • Supplier is still issuing invoices against an old purchase order Note: A new PO should be issued to the supplier before the existing one is Final Closed FINAL

FINAL CLOSE PO PROCESS[continued] • “What are steps I need to take prior to Final Closing a PO”? • Purchase Order has been fully executed which includes: • All goods and/or services were received • All invoices were entered into BEN Financials and all holds have been resolved • All checks have been issued to the supplier

FINAL CLOSE PO PROCESS[continued] AP responds ‘Final Close is NOT an option’ for your PO Final Close request. Why? Since the system does not inform AP on the reason WHY a PO can not be final closed, it could be one or more of the following reasons: • PO has been receipted but not yet billed (invoiced) • An account segment on the purchase order has been disabled

BEN Helps & P2P [PROCURE-TO-PAY] Presents “ The Procure to Pay Life Cycle”