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PROCURE TO PAY OVERVIEW

ROLES INITIAL APPROXIMATE RESOURCES: (ALL) Initiators Approvers Receivers OVERVIEW This section outlines the steps in the Procure to Pay process. The remaining sections of this manual will focus on the details with regards to the Procure to Pay process. In the FAST PeopleSoft environment, some of the current procurement processes will become automated. Departmental Users will use the online requisition functionality in the PeopleSoft Purchasing module to initiate a request for purchase. The identification of where the expense should be charged will be done on the requisition and will carry forward automatically through the Purchase Order (PO) to the Voucher. Online workflow approval and receiving processes will replace the manual signature approval. Once the requisition is approved, the system will generate a PO, which is the official authorization to purchase goods or services. There will be no automatic notification of the requestor when the POs have been dispatched. The requestor/user will be responsible for monitoring their requisitions and knowing when a PO has been generated and purchase authorized. The vendors will be directed to send invoices directly to the Accounts Payable department for processing rather than to the requesting departments. Authorization to pay will be confirmed via online receiving and acceptance of the goods or services by the departments. Accounts Payable will enter the invoices from the vendors, as vouchers, into the PeopleSoft Payables system in the order they are received. PeopleSoft will match the vouchers to the purchase orders and receipts. Any exceptions to the matching process (quantity or price variances) over predefined tolerances will be routed via workflow to the departments for review. Once the vouchers are successfully matched, the PeopleSoft payables system will generate payments when due based on payment terms and invoice dates. There will be no automatic notification of the user/requestor when invoices are entered and paid. The user/requestor will be responsible for monitoring his/her requisitions and knowing when invoices are entered and paid.

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Requisition - The online request for goods or services to be acquired from a supplier. Approval - After a requisition is entered, workflow will direct it through the system to the appropriate approvers. Once it is approved, it will move through several processes and be built into a purchase order. Purchase Order Authorization to purchase goods or services. Receiving Online acknowledgement of receipt and acceptance of goods or services. Vouchering/Payment In PeopleSoft Accounts Payable every vendor invoice will be assigned a unique voucher ID. Payments of the vouchers will be based on Florida Statutes which dictate that payment be made within 40 days after which interest will be accrued. Adjustments (Non-Payroll Expenditure Transfers) In the PeopleSoft environment, the non-payroll expenditure transfers will be entered by Accounts Payable as journal entries directly into the PeopleSoft General Ledger module. Reporting and Inquiry PeopleSoft provides many online inquiry pages as well as several user tools for researching information. NOTE: The information in this guide is based on certain assumptions: Users have previously received training in PeopleSoft 8.4 navigation Control tables have been set up with needed values prior to performing the activities described in the sections to follow.

DOCUMENTS REQUIRED Payment Request Form Travel Advance Request Form Travel Expense Reimbursement Form Change Order Request Form Expenditure Transfer Request Form

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Procure to Pay process flow:


Online Requisition (requisition must have a budget check status of Valid) Approval (could be multiple levels depending on the nature and amount of the purchase) PO Batch Processing PO Sourcing PO Calc PO Create PO Dispatch Order Placed with Vendor A

No

Approved?

Yes

Goods/ Services

Invoice Record Inspection of Goods in PS Purchasing (required for consturction only) Placed in Service Yes Inspection Required? Record Receipt of Goods in PS Purchasing

Yes

Goods/ Services accepted?

No Matching (compares invoice to PO, Reciept and where applicable Inspection)

Return to Vendor (RTV)

Invoice Entered into PS Payables

No

Return for Credit or Exchange

No Return B Route for Exception Handling

Matched?

Yes

Exchang e A General Ledger

Available for Payment Processing

Expenditure Transfers

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PeopleSoft Procure to Pay links Purchasing and Payables modules to provide control and visibility over the entire life-cycle of a transaction right from the way an item is ordered to the way that the final invoice is processed. If you are starting out as a Procure to Pay consultant, this list of tables will be a quick reference for you. The main application tables used in the Procure to Pay cycle are listed here.

Master data tables


Module AP PO, IN GL GL GL GL GL PO PO, IN IN Table Name VENDOR ITEM GL_ACCOUNT_TBL DEPT_TBL PRODUCT_TBL PROJECT_FS OPER_UNIT_TBL MASTER_ITEM_TBL INV_ITEMS STOR_LOC_INV Description Vendor Header Items Accounts Departments Products Projects Operating Units Item Master Header Inventory Item master Storage Location Definition

Transaction tables
Module AP AP AP AP AP AP AM AM AM AM Table Name VOUCHER DISTRIB_LINE PAYMENT_TBL PYMNT_ADVICE VENDOR BUS_UNIT_TBL_AP ASSET ASSET_ACQ_DET DEPRECIATION COST Description AP Voucher Header Voucher Distribution Lines AP Disbursements AP payment Advice Information Vendor Header AP Business Unit table Asset general Information Asset Acquisition Detail Depreciation transactions Asset Cost Transactions

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PO PO PO PO AR GL GL IN IN IN IN IN

REQ_HDR REQ_LN PO_HDR PO_LINE ITEM JRNL_HEADER JRNL_LN CM_ONHAND_VW CM_INTRANSIT TRANSACTION_INV IN_DEMAND PHYSICAL_INV

Requisition header Requisition line Purchase order header Purchase order line Customer Items Journal Headers Journal Line Data On hand quantity Inventory in transit Inventory Transactions Order Request Physical Inventory

Accounting tables
Module AP AM GL AR PO IN Table Name VCHR_ACCTG_LINE DIST_LN LEDGER ITEM_DST PO_LINE_DISTRIB CM_ACCTG_LINE Description AP Accounting entries AM Accounting entries Ledger Data AR Accounting entries POline accounting entries INV Accounting Distribution

Process flow for Procure to pay will go through two departments (Commercial & Finance) Procure - Commercial Department The following steps invovle to prcure any item 1. Received Requsition from concern Department 2. Request for Quotation from Suppliers at least three 3. Finalize the best Quotation by keeping in mind about our companies standard 4. Check the Budget for the same 5. Negociate with supplier for more economic pricing and finalize the payment terms 6. Process the PO and forward to the supplier to supply the goods and services Pay Cycle - Finance Department

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The following steps need to be fulfil 1. Invoice should be match with PO 2. Invoice should has all the supporting documents such as PO copy,Delivery note duly signed by reciever (our staff who authorized to received goods / store keeper) 3. If the invoice is for services then it should be forwarded to the concern department head or project manager for his confirmation of work done and his approval 4. Even if it not the services invoice, it should forwarded to the concern person's approval who request the PO for the same 5. Finance can reject the invoice if it is not budgeted and ask for the reasons. 6. After receiving all the confirmation and approvals from the concern department heads the invoice will be update in to the accounting system first in order to avoid any duplication of Invoice and PO (it shown on accounting package if the invoice is duplicate if not, altelast it tells you if the PO already used or cancel) 7. Finance approved the invoice and process the payment base on payment terms with the supplier.

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