PROCURE TO PAY REPORTS

April 2017 Cindi Stinebaugh

COURSE CONTENT• Objectives• Resources• Procure-to-Pay Postings Document• Flow of PO’s on Reports• ME23N Display Purchase Order T-code in SAP• Ariba Reports - Invoice Reconciliation Report,

IRE Approval Only Report• SAP Reports - Open PO Report, Blocked Invoice

Report, GR/IR Clearing Report, Open Commitments, Vendor Invoice Report

COURSE OBJECTIVESUpon completion of this course you will:• Understand where to find resources on procure

to pay reports• Understand how purchase orders flow through

the FM ledger• Understand the procure to pay reports and how

to work them

RESOURCESBusiness@Purdue — Purchasing page

– Process Documents– QRC’s– Training documents– Purchase Order Commitments – All Postings

Business Manager Task Checklist (Procurement Tab)

Procure-to-Pay Helpdesk or by phone 765-49-47279

PROCURE TO PAY POSTINGS

Postings document

FLOW OF PO’S ON REPORTS***Invoices will only appear on reports if an exception is raised. If the invoice is less than, equal to or within the tolerance of the PO quantity and price; and has been received in Ariba prior to the invoice posting, the invoice will pass to SAP without an exception being raised.

Reports in Ariba – these reports need to be cleared before the invoice will pass to SAP

Invoice Reconciliation Report – Exception in Reconciling status• Exceptions need to be reconciled on this report

– once the exception is reconciled the invoice reconciliation document will move to approving status

• Review report to catch any exceptions that may have been referred/deferred in error

– No exceptions should ever be referred/deferred– Also, there could be exception assigned to someone who has left the department.

NOTE: These reports are run centrally every week and posted on the Procure-to-Pay SharePoint site.

FLOW OF PO’S ON REPORTS***Invoices will only appear on reports if an exception is raised. If the invoice is less than, equal to or within the tolerance of the PO quantity and price; and has been received in Ariba prior to the invoice posting, the invoice will pass to SAP without an exception being raised.

IRE Approval Only Report – Exceptions in Approving status• Exceptions need to be approved before they will move to paying status and

transfer to SAP to pay the supplier• Invoice Reconcilers approve the PO Received Quantity exception (the receiving

exception)• Fiscal Approvers approve any fiscal exception such as PO Price, PO Quantity,

Shipping, Special Handling, PO Received Line Amount

NOTE: These reports are run centrally every week and posted on the Procure-to-Pay SharePoint site.

FLOW OF PO’S ON REPORTS• Open PO – PO appears here first until it is fully

received in SAP or canceled

• Blocked Invoice – if an invoice is blocked for any reason in SAP (e.g. receipt not posted in SAP or the invoice is Out of Tolerance for quantity or price)

NOTE: These reports are run centrally every week and posted on the Procure-to-Pay SharePoint site.

FLOW OF PO’S ON REPORTS• GR/IR Clearing –

• A PO will appear on the GR/IR if the quantity for the GR (Goods receipt) does not match the quantity for the IR (Invoice receipt).

• A Goods Receipt and No Invoice Receipt• An Invoice Receipt and No Goods Receipt

NOTE: The dollar amount does not cause a PO to appear on the GR/IR, only quantity

• Vendor Invoice Report – Open Invoices, In relationship to PO’s this report should be checked prior to closing any accounts. If a PO is has an open invoice the account should not be closed until the payment is completed or the payment will be stopped from being sent to the supplier

NOTE: These reports are run centrally every week and posted on the Procure-to-Pay SharePoint site.

INVOICE RECONCILIATION REPORT Invoice Reconciliation Report – Exception in Reconciling status

• Review report to catch any exceptions that may have been referred/deferred in error

– No exceptions should ever be referred/deferred– Also, there could be exception assigned to someone who has

left the department. Contact the Procure-to-Pay Helpdesk if this has happened, to have the exceptions re-assigned

• Invoice Reconciliation Exceptions in Ariba - Invoice Reconcilers QRC for detailed instructions for Invoice Reconcilers

IRE APPROVAL ONLY REPORTIRE Approval Only Report – Exceptions in Approving status

• Invoice Reconcilers approve the PO Received Quantity exception (the receiving exception) this is roughly 75-80% of the lines

• Fiscal Approvers approve any fiscal exception such as PO Price, PO Quantity, Shipping, Special Handling, PO Received Line Amount

• Invoice Reconciliation Exceptions – Fiscal Approver QRC for detailed instructions for Fiscal Approvers

ME23N- DISPLAY PURCHASE ORDERPurchase Order History Tab

• Displays any GR (Goods receipts) and IR’s (Invoice Receipts) per line transferred to SAP from Ariba

Account Assignment Tab• Displays the account information for the PO

Commitments for this PO• In the top menu, Click Environment and then AC

Commitment Documents

ME23N- DISPLAY PURCHASE ORDER

OPEN PO REPORT• This report will display all purchase orders (by line item)

that have not been fully received or canceled in SAPo If a receipt fails to pass to SAP from Ariba, the PO will still show

on this report. Contact the Procure-to-Pay Helpdesk if a receipt has been processed/approved in Ariba, but has not transferred to SAP

NOTE: There is a slight delay in manually posting failed receipts by Procurement Services staff. Look for the reply comment to the failure message in Ariba once the receipt has been manually processed

Exception: Fisher Scientific Storeroom PO’s are a 2-Way Match and no receipt is created/processed in Ariba. (There is about 8 months in 2016 Feb- Oct for the supplier EAC). Two-Way match PO’s are only found on the All Postings Report. • T-code ME23N, Display Purchase Orders which is where users can

see details for the PO’s found on this report

OPEN PO REPORT• T-code: 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 on a regular basis by Business Office and if necessary the Receiver to follow up if PO should be canceled or items were physically received and then process the receipt in Ariba

OPEN PO REPORT

NOTE: This report is ran centrally every week and posted on the Procure-to-Pay SharePoint site.

OPEN PO REPORT

OPEN PO REPORT• Review list for your area (college, dept., cost center)• Ariba Receivers should process the receipt in Ariba,

for those PO’s that items were physically received in acceptable condition and payment should be made

• If a PO should be canceled, the Ariba Receiver should follow the cancel instructions in the Receiving in Ariba QRC, The receiver will need to pay attention if a receipt has been processed and needs to be reversed

• DO NOT process the receipt in Ariba for any PO’s that have NOT been physically received

OPEN PO REPORT• Benefits of keeping up with this report

owill remove/stop these PO’s from creating a receiving invoice reconciliation exception and showing up on the blocked invoice list unless they are out of tolerance for quantity or price

owill help keep outstanding commitments under control

o Timely movement from commitment to expense allows appropriate overhead to follow

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 receipt not posted in SAP

• ZFI_BLOCKED_INVOICEo Procurement Services staff review this report weekly

and will contact departments, if assistance is needed.

BLOCKED INVOICE REPORT

NOTE: This report is run centrally every week and posted on the Procure-to-Pay SharePoint site.

BLOCKED INVOICE REPORT

GR/IR CLEARING REPORT• Purchase Orders will appear, by line item, on the

GR/IR Clearing report when the quantity of the GR does not match the quantity of the IR

– If no receipt or no invoice that equates to quantity zero

• T-code: ZFI_GR_IR_CLEARING• GR/IR=Goods Receipt/Invoice Receipt• If items are in the GR/IR account, there could be

an impact positive or negative on your financial statements

GR/IR CLEARING REPORTS

NOTE: This report is run centrally every week and posted on the Procure-to-Pay SharePoint site.

GR/IR CLEARING REPORTS

GR/IR CLEARING REPORT• Should be reviewed by Business Office and

Receiver if necessary• Review outstanding entries (return delivery needed,

quantity issue, goods receipt needed, blocked invoice, other issue, credit memo needed and invoice needed (verify items were physically received – If not received, may have auto-receipted and need to be reversed.)

• Use ME23N to see what has happened in SAP (double click on PO #) verify activity in Ariba receipts and invoices tabs

• Compare against Open PO & Blocked Invoice notes

GR/IR CLEARING REPORT• Action = Return Delivery Needed

• Scenario 1PO Qty= 1Net Goods Receipt Qty=1Net Invoice Receipt Qty=0

– If item was returned to vendor, and no replacement being provided, Ariba receiver should process:

• a reversal receipt (negative in accepted field) and • note the return (positive in rejected field) in Ariba

Receiving in Ariba QRC

GR/IR CLEARING REPORT• Action=Invoice Receipt (IR) Needed

• Scenario 2 PO Qty=3Net Goods Receipt Qty=3 No Invoice Receipt

• Determine actual quantity physically received. • If no goods actually received, then process reversal

receipt in AribaReceiving in Ariba QRC

– If Goods Receipt Qty=3 is accurate, then contact vendor for invoice for Qty=3

GR/IR CLEARING REPORT• Action=Goods Receipt (GR) Needed

• Scenario 3PO Qty=1No Goods ReceiptNet Invoice Receipt Qty=1

– This scenario should not happen very often and if it does Procurement Services should be working on posting the failed receipt in SAP.

GR/IR CLEARING REPORT• Action=Quantity Issue

• Scenario 4 PO Qty=5Net Goods Receipt Qty=5 Net Invoice Receipt Qty=3

• Verify quantity actually received» If GR is correct, contact vendor for remaining invoice

receipt qty of 2.» If GR is incorrect, process reversal for the difference

Receiving in Ariba QRC

GR/IR CLEARING REPORT• Action=Quantity Issue

• Scenario 5PO Qty= 4Net Goods Receipt Qty=2Net Invoice Receipt Qty=4

• If GR is correct, contact vendor for credit memo or the additional items

• If GR is incorrect and the other 2 items were physically received, the Ariba receiver should process an additional receipt for 2 in Ariba

GR/IR CLEARING REPORT• Action= Quantity Issue

• Scenario 6PO Qty=3Net Goods Receipt Qty=3Net Invoice Receipt Qty=5

• Accounts Payable staff will clear these based on the approval of the PO Quantity exception in Ariba

GR/IR CLEARING REPORT• Action= Credit Memo Needed

• Scenario 7PO Qty=3Net Goods Receipt Qty=0Net Invoice Receipt Qty=3

• The invoice has been paid• Verify the items were returned to the supplier

» If yes, either wait for the credit memo, if more than 2-3 weeks have past contact the supplier to request a credit memo

» If the items were not return to the supplier, the Ariba receiver should process the receipt again in Ariba

GR/IR CLEARING REPORT• Action= Blocked Invoice

• Scenario 8PO Qty=8Net Goods Receipt Qty=0Net Invoice Receipt Qty=8

• Procurement Services works these and will contact department if assistance is needed

• The invoice has not been paid

GR/IR CLEARING REPORT• Action=Other Issue

• Scenario 9In most cases an account maintenance has been

completed and then there is activity to bring the GR qty and IR qty back in balance

Email the Procure-to-Pay Helpdesk with the PO# and GR/IR Other Issue in the email

Procurement Services staff will work to clear the issue

GR/IR CLEARING REPORT• Benefits of keeping up with this report

o Account balances will be more accurate Prior to closing accounts especially

o Promotes work time efficiencyo Vendors will be paid in a more timely manner

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.

• T-code: ZFI_VENDOR_INVOICES

VENDOR INVOICE REPORT

NOTE: This report is run centrally every week and posted on the Procure-to-Pay SharePoint site.

VENDOR INVOICE REPORT

ALL POSTINGS• This report lists open commitments• FMRP_RFFMEP1AX—

(variant=COMMITMENTS) this variant is for PO’s

• This report should be reviewed by the Business OfficeoReview the issues from your other lists and

mark off this list so you do not review the same issues

ALL POSTINGS• This report will catch 2-Way Match

suppliers with open commitments:• Currently - Fisher Scientific Storeroom

PO’s • Previously - EAC Bus Rentals for 8 months

in 2016 (February-October)

ALL POSTINGS

ALL POSTINGS

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 are paid

QUESTIONS?• Review Process documents, QRC’s and

Training materials on business@purdue – Purchasing page

• Procure-to-Pay Helpdesk or by phone 765-49-47279