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Procure to pay process Release 12 PowerPoint Presentation
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Procure to pay process Release 12

Procure to pay process Release 12

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Procure to pay process Release 12

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  1. MINISTRY OF FINANCE IFMIS RE-ENGINEERING Procure to pay process Release 12

  2. Table ofContents 1.0 IFMIS Financial Management Operating Model 13 1.1 Introduction (Over view of Procure to Pay Process) 14 1.2 P2P Over all Process 16 2.0 Develop Procurement Plan23 3.0 Manage and Record Requisition and Purchase27 3.1 Manage and Record Requisition and Purchase Process Flow 28 3.2 Requisition and Purchase Process at a Glance 32 3.3 Requisition Key Data Elements 33 3.4 Requisition Reports 45 3.5 Supplier 51 3.6 Purchase Order 77 3.7 Purchasing Reports 96 4.0 Manage Received Paper Documents104 4.1 Document attachment in PO 108

  3. Table ofContents 5.0 Record Goods Receipt; Approve and Schedule Payment109 5.1 Delivery/ Receipt and Acceptance of Goods and Inspection 110 5.2 Receiving Process 113 5.3 Purchase Order – Receipt 122 5.4 Receiving Reports 128 5.5 Invoice Processing Flow 135 5.6 Invoice Related Reports 192 6.0 Process Payments 199 6.1 Payment Related Reports 225 7.0 Address Vendor Inquiries; Handle Disputes and Exceptions236 8.0 Perform PTP Reconciliations and Period End Close Activities 239 8.1 Accounting Cycle 242 8.2 Period Close Checklist 243 8.3 P2P Close Processes 246 8.4 Overview of the P2P Period Close 247 8.5 Reconcile AP to GL 248 8.6 Payables Reports 249

  4. Table of Figures Figure I To Check Funds 34 Figure II Requisition Headers 35 Figure III Requisition Headers 36 Figure IV Requisition Lines 37 Figure V Requisition Distributions 38 Figure VI Requisition Approval 41 Figure VII Requisition Approval Flow 43 Figure VIII Requisition Approval Flow 44 Figure IX Supplier Creation 54 Figure X Supplier - Type 55 Figure XI Supplier – Setup Steps 56 Figure XII Supplier – Tax Details 57 Figure XIII Supplier – Address Book 58 Figure XIV Supplier – Site Name 59 Figure XV Supplier Site – Address Purpose 61

  5. Table of Figures Figure XVI Supplier Site Name, Address and OU’s 62 Figure XVII Supplier - Contact Details 63 Figure XVIII Supplier – Bank Account and Assignment Details 64 Figure XIX Supplier – Attach Supplier Bank Information 65 Figure XX Supplier Site – Account Information 66 Figure XXI Supplier Site – Receiving Details 68 Figure XXII Supplier – Payment Details 69 Figure XXIII Supplier – Payment Details 70 Figure XXIV Supplier – Invoice Details 71 Figure XXV Employee as Supplier 73 Figure XXVI Employee as Supplier (Site) 74 Figure XXVII Employee as Supplier (Site) 75 Figure XXVIII Standard Purchase Order - Header 82 Figure XXIX Standard Purchase Order - Header 83 Figure XXX Standard Purchase Order - Lines 84

  6. Table of Figures Figure XXXI Standard Purchase Order – Lines DFF 85 Figure XXXII Standard Purchase Order – Shipments 86 Figure XXXIII Standard Purchase Order – Match Option 87 Figure XXXIV Standard Purchase Order - Distribution 88 Figure XXXV Standard Purchase Order - Approve 91 Figure XXXVI PO Approval Process 92 Figure XXXVII PO Approval Forward Process 93 Figure XXXVIII PO Approval Notification 94 Figure XXXIX Approved Purchase Order 95 Figure XL Document Attachment Form 108 Figure XLI Purchase Order - Receipt 122 Figure XLII Purchase Order – Receipt Header 123 Figure XLIII Purchase Order – Receipt Line 124 Figure XLIV Purchase Order - Receipt 125 Figure XLV Purchase Order – Receipt Inspection 126

  7. Table of Figures Figure XLVI Purchase Order – Receipt Inspection 127 Figure XLVII Invoice Batches Processing 144 Figure XLVIII Invoice Batch – Enter NEW 145 Figure XLIX Invoice Entry in Batch 146 Figure L Invoice Header 147 Figure LI Invoice Lines 148 Figure LII Invoice Distribution 149 Figure LIII Invoice Processing Status 151 Figure LIV Invoice Actions 152 Figure LV Invoice Validation 153 Figure LVI Invoice Validation Status 154 Figure LVII Invoice Processing with PO 155 Figure LVIII Invoice Processing with PO Header 156 Figure LIX Invoice Processing with PO Header 157 Figure LX Invoice Processing with PO Match 158

  8. Table of Figures Figure LXI Invoice Processing with PO Match Lines 159 Figure LXII Invoice Processing with PO Validation 160 Figure LXIII Invoice Processing with PO Status 161 Figure LXIV Prepayment Invoice 163 Figure LXV Prepayment Invoice Header 164 Figure LXVI Prepayment Invoice 165 Figure LXVII Prepayment Invoice Lines 166 Figure LXVIII Prepayment Invoice Distribution 167 Figure LXIX Prepayment Invoice Status 169 Figure LXX Prepayment Invoice Validation 170 Figure LXXI Prepayment Invoice Validation Status 171 Figure LXXII Prepayment Invoice Payment 172 Figure LXXIII Prepayment Invoice Apply 173 Figure LXXIV Prepayment Invoice Payment Status 174 Figure LXXV Applying Pre-payment with Standard Invoice 175

  9. Table of Figures Figure LXXVI Applying Pre-payment with Standard Invoice 176 Figure LXXVII Applying Pre-payment Header 177 Figure LXXVIII Applying Pre-payment Lines 178 Figure LXXIX Applying Pre-payment Distribution 179 Figure LXXX Applying Pre-payment Actions 181 Figure LXXXI Applying Pre-payment Validation 182 Figure LXXXII Applying Pre-payment Status 183 Figure LXXXIII Apply/Unapply Pre-payments 184 Figure LXXXIV Apply/Unapply Pre-payment Lines 185 Figure LXXXV Pre-payment Applied Status 186 Figure LXXXVI Invoice Validation & Create Accounting 187 Figure LXXXVII Payment Batches Templates Selection 207 Figure LXXXVIII Payment Batches Templates Attributes 208 Figure LXXXIX Payment Batches Templates Process Automation 209 Figure XC Payment Batches Process Requests 210

  10. Table of Figures Figure XCI Payment Batches Build 212 Figure XCII Payment batches Modify 214 Figure XCIII Payment batches Review 215 Figure XCIV Payment batches Rebuild 217 Figure XCV Payment batches Rebuild Review 218 Figure XCVI Payment Process Request Status 220

  11. List of Abbreviations A-I-A Appropriation in Aid AIE Authority to Incur Expenditure AP Accounts Payable AWP Annual Work Plans BD Budgeting Supplies Department BPG Budget Procedural Group BPR Business Process Re-Engineering BPS Budget Policy Statement BSC Budget Steering Committee BSP Budget Strategy Paper CBK Central Bank of Kenya CMM Cash Management Module CoA Chart of Accounts EFT Electronic Funds Transfer ERD External Resources Department EXU Exchequer Unit GL General Ledger GoK Government of Kenya GPAY Government Payment System ICT Information, Communication and Technology IFMIS Integrated Financial Management Information System

  12. List of Abbreviations IPPD Integrated Personal Payroll Data KRA Kenya Revenue Authority MDG Millennium Development Goals MOF Ministry of Finance MPER Ministerial Public Expenditure Reviews MTC Ministerial Tender Committee MTEF Medium Term Expenditure Framework P2B Plan to Budget P2P Procure to Pay PBB Programme Based Budgeting PFM Public Financial Management PO Purchase Order PPOA Public Procurement Oversight Authority PR Purchase Requisition PS Permanent Secretary R2C Revenue to Cash R2R Record to Report RFP Request For Proposal RFQ Request For Quotation VAT Value added Tax

  13. 1.0 IFMIS Financial Management Operating Model

  14. Overview of Procure-to-pay 1.1Introduction Procure-to-Pay is the end to end process consisting of procurement of goods and services to payment of the supplier for the goods delivered or services performed.

  15. 1.1 Overview of Procure-to-pay  It may include a basic procurement process for low value items: Manual purchase requisitions and purchase orders to procure items Receipts that are matched to invoices when they are delivered Payments  It may also entail a more complex cycle for high value items which is more commonly used by the government: Suppliers are determined by different sourcing rules (e.g. RFQs and Open Tender) Items are received into inventory according to supplier advanced shipping notifications Invoices are created from the inspection process and paid with scheduled payment runs that remit the funds directly into the suppliers’ bank accounts

  16. 1.2 Procure-to-Pay Overall Process • Lesson 1: Overview • Lesson 2: Setting up Suppliers • Lesson 3: Documents – Requisitions • Lesson 4: Documents – Purchase Orders • Lesson 5: Receiving • Lesson 6: Invoice Entry • Lesson 7: Payments • Lesson 8: Integration with General Ledger • Lesson 9: Key setups • Lesson 10: Key setup reports

  17. Procure to Pay Process

  18. Procure-to-Process at a Glance R2R P2P REQUISITIONS RECEIVING/ QC/Inspection JOURNALS RFQs Transfer To INVOICES POSTING QUOTE General Ledger PAYMENTS UPDATED ACCCOUNT BALANCES PURCHASE ORDERS

  19. Purchase Orders PO HEADER CATALOG, QUOTES LINES REQUISITION POOL SHIPMENTS PURCHASE ORDER PRIOR PURCHASES DISTRIBUTIONS

  20. Receiving DELIVERY RECEIPT ROUTING RECEIVING

  21. Invoice Entry INVOICE BATCH INVOICES INVOICES DISTRIBUTIONS INVOICES LINES VALIDATED APPROVED ACCOUNTED

  22. Payment Process BATCH PAYMENT SINGLE PAYMENT PAYMENTS MANAGER QUICK PAYMENT 1 SELECT INVOICES PAY IN FULL 2 BUILD PAYMENTS 3 REVIEW / MODIFY MANUAL SUPPLIER PAYMENTS 4 RE-BUILD 5 FORMAT PAYMENT

  23. 2.0 Develop Procurement Plan The requirement for procurement planning is aimed at ensuring smooth implementation of projects/service delivery as well as completely eliminating pending bills. This process is currently manually performed and involves the department users in the ministries forecasting their needs for goods and services for the year In the target process, the consolidated annual procurement plan shall be prepared by the procurement unit in the system (Procurement officer completes the template). It will be approved by the tender committee and the head of the procuring entity and where applicable by the board of directors or a similar body

  24. Develop Procurement Plan Process Flow

  25. Develop Procurement Plan Process Flow

  26. Develop Procurement Plan Process Flow

  27. 3.0 Manage and Record Requisition • and Purchase • The Manage and Record Purchase process consists of creating the purchase requisition identifying the goods and services to be procured based on the procurement plan. • There will be a standard electronic purchase requisition and purchase order form available to the appropriate users in the ministries. • There is an electronic approval process with automated workflow with delegated approvers with different levels of approval for different thresholds. • The purchase requisition must be created and approved before the purchase order can be created • Currently there are 7 different procurement methods: • Open Tender , Request for Quotation (RFQ) , Request for Proposal (RFP), Direct, Specially Permitted, Low Value & • Restricted. • IFMIS will be a fully automated with eProcurementsystem

  28. 3.1 Manage and Record Requisition and Purchase Process Flow

  29. Manage and Record Requisition and Purchase Process Flow

  30. Manage and Record Requisition and Purchase Process Flow

  31. Manage and Record Requisition and Purchase Process Flow

  32. 3.2 Requisition and Purchase Process at a Glance Create Purchase Order Determine Need Create Requisition Assign Buyer Approve Requisition • Enter Online Web Requisition • Create Internal Requisition • Use Item Catalog • Use Requisition Templates • Review Buyer Workload • Assign Unassigned Requisitions • Use Approval Hierarchy • Use Direct Supervisor Relationships • Review/Update Requisition

  33. Requisition Header REQUISITION HEADER Line LINES DISTRIBUTIONS

  34. 3.3 Requisition Key Data Elements (Process) • HEADER • Operating Unit • Requisition number • Preparer • Status • Type • LINE • Item, Description, Category • UOM, Quantity, Price, Need-by-date • Destination type, Organization, Location, Buyer • Notes – Buyer, Receiver • DISTRIBUTIONS • Quantity • Charge Account

  35. To Check Funds Figure I To Check Funds

  36. Requisition Headers Figure II Requisition Headers

  37. Requisition Headers Figure III Requisition Headers

  38. Requisition Lines Figure IV Requisition Lines

  39. Requisition Distributions Figure V Requisition Distributions

  40. Accounting for Requisition Distribution Line • In the Account field choose following segments appropriately, in below explanation find sample values from above example) • Class : Recurrent/Development/Deposit/Revenue (0 ) • Vote : The Ministry for which you entering Invoice (107) • Administrative : Vote followed by Sub vote and Head in Sub vote (000000000) • Source of Funding : Select Account for which you are raising Invoice (00000000) • Programme : The Ministry from which receiving funds for Payment (000000) • Economic Item : For which program the Invoice is paying (0000000) • Geographical Location : Need to select for which Department the Invoice is Charging (0000000) • Future : Future Use (000)

  41. Manage and Record Requisition and Purchase To-Be Process Flow

  42. Requisition Approval Figure VI Requisition Approval

  43. Requisition Approval Process Supply Chain Management Assistant 1 Senior Supply Chain Management Officer 2 AIE Holder 3 Finance Officer 4

  44. Requisition Approval Flow Figure VII Requisition Approval Flow

  45. Requisition Approval Flow Figure VIII Requisition Approval Flow

  46. Requisition Reports * Printed Requisitions Report * Purchase Requisition Status Report * Requisition Activity Register * Cancelled Requisitions report

  47. Printed Requisitions Report Sample output of Printed Requisitions Report

  48. Purchase Requisition Status Report Sample output of Purchase Requisition Status Report

  49. Requisition Activity Register Sample output of Requisition Activity Register

  50. Cancelled Requisitions report Sample output of Cancelled Requisitions report