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BOISE CASCADEMANAGING AGING RECEIPTS

SUPPLIER RELATIONSHIP MANAGEMENT

PRODUCT USER GROUP CONFERENCE

FEBRUARY 28, 2007

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Presenters

Shannon Harris

Corporate Shared Accounting Services

Mark Kirkland

Corporate Procurement

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Topics Covered

Boise Cascade Company Information

Automated Reconciling Processes

Receipt – Accrue/Non-Accrue

Old Receivers (90-Days and Older)

Users involved in cleanup

Questions and Answer Session

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Boise Cascade Company Background

Company Headquarters in Boise, Idaho

10,000+ Employees

Operations

Domestically throughout the United States

Internationally in the United Kingdom, Brazil, and Canada

Four Major Divisions

Building Materials Distribution (29 Distribution Centers)

Paper Manufacturing (4 Paper Mills)

Timber and Wood Products (21 LVL, Plywood, Lumber, & Veneer Plants)

Packaging and News Print (1 Paper Mill, 5 Packaging Plants)

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2005 Sales by Business -- $ Millions

1,418

1,294

3,052

732Packaging &

Newsprint

Paper

Wood Products

Building MaterialDistribution

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Versions of PeopleSoft

Began Converting to PeopleSoft Version 5.1 in 1996

Upgraded to Version 7.5 in November 1999

Added eProcurement 8.0 in 2002

Upgraded to 8.8 on November 28, 2005

Currently on PeopleSoft 8.8 - SP 1 - MP 5 – Bundle 20

Current Strategy is to apply all available Bundles on a quarterly basis

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2005 Finance and Purchasing Statistics

~ 2,400 Purchasing and Finance Users

20 Purchasing Business Units

26 Inventory Business Units

179 AP Business Units

238 General Ledger Business Units

~ 280,000 Item Ids

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2005 Finance and Purchasing Statistics

293,688 Journals

1,447,625 Vouchers

328,794 Payments

1473 Pay Cycles

107,880 Purchase Orders

68,546 Requisitions

191,737 Receipts

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Modules In Use

Purchasing

Inventory

Accounts Payable

Accounts Receivable

Asset Management

Project Costing

General Ledger

Budget

Billing

Contracts

eProcurement

Human Resources

Benefits Administration

Payroll

ePay

Treasury (coming soon)

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Integrated Systems

Maximo 5.2

Maximo is a maintenance planning application used by

some Business Units

Requisitions that are written in Maximo and ‘Replicated’

into PeopleSoft

PeopleSoft and Maximo also share the following:

Purchase Orders

Receipts

Vouchers

Item IDs and Descriptions

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The Processes are ran automatically every two weeks.

PO Reconcile

Requisition Reconcile

Receipt Reconcile

Automated Reconciling Processes

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90-Day Receivers

What are 90-day Receivers and why are they a problem?

Receivers that are older than 90-days and do not have a matched status

These Receivers are for Purchase Orders where Receiving is Required

These Receivers represent a liability (expense) to the company.

Some of these Receivers may be duplicate or are no longer valid

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Receipts – Accrue/Not Accrue

Receipts for Purchase Orders when Receiving is Required are Accrued

Receipts for Purchase Orders when Receiving is not Required are not Accrued. These Receipts are for more informational purposes

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90-Day Receivers continued

Purchasing agents periodically run a custom query that will identify 90-Day Receivers

Shared Accounting Services sends out monthly reports on the number of 90-Day Receivers and their total Value.

Buyers, Receivers, Storeroom Users, Accounts Payable, and sometimes the Vendor all work together to get the Receivers matched and paid (or sometimes cancelled)

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Back to 90-Day Receivers

Here are some of the reasons why 90-day old receivers exists:

Invoice was processed as freight.

Invoice was paid on a summary billing.

Invoice was paid on a credit card.

Invoice was closed and paid express.

In house repairs.

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Manually Matching Receipts

Sometimes it is determined that a Receipt is valid, but for some reason it has not matched or it will never match

A custom SQR process is ran to Manually match the Receiver. This process also places comments on the Receiver and the PO to aid in future research.

A list of Manually Matched Receipts is sent monthly to G/L Accountants so that the appropriate entries can be made in the Ledger

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Questions and Answer Session

QUESTIONS

AND

ANSWERS