MID-ATLANTIC USER’S GROUP PROCUREMENT PANEL

May 11, 2016

PROACTIVE PO MANAGEMENT YEAR END & CARRY-FORWARD

PROCESSES

• Doug Baugh – Henrico County • Lisa Cockrell – Loudoun County • Trish Donahue – City of Virginia

Beach • Robert Foushee – Oracle

Corporation • Andrea Philyaw – Loudoun County

Public Schools

INTRODUCTIONS

• Loudoun County Public Schools – Fiscal Year Calendar &

Approach – Year End Checklist – Reconciliation – Carry Forward – Key Reports

• Henrico County – Mass PO Cancellation Process

• Loudoun County – Carry Forward – Encumbrance Reconciliation

• City of Virginia Beach – Outstanding PO Close Process – Close Out Instruction Manual – Mandatory Dual Year Training – Alerts

• Oracle Best Practices • Discussion, Q & A

AGENDA

• Loudoun County Public Schools Processes – Fiscal Year Calendar – Collaborative Approach – Year End Checklist – Reconciliation – Carry Forward Process – Key Reports

• Over 90 Day Report • Un-invoiced Receipts Reports • Unassigned Requisitions • General Ledger Trial Balance

LOUDOUN COUNTY PUBLIC SCHOOLS ANDREA PHILYAW PROCUREMENT DIRECTOR ORACLE EBS 12.? CURRENT MODULES INCLUDE: GL, PO, AP, PROJECTS/GRANTS

Mass Cancellation Process Basic Set-Up 1. Set-up 3 DFFs on the Fund Value Set

a) Rule#1 – If Open PO is a blanket is should be cancelled or left open

b) If the Open PO has not had activity in last 365 days, it should be cancelled. Inactivity includes:

i. Last Invoice Matched ii. Last receiving receipt added iii. PO last update date

c) If the Open PO has a remaining balance below $500

HENRICO COUNTY DOUG BAUGH FINANCE PROJECT MGR ORACLE EBS 12.1.3 CURRENT MODULES INCLUDE: GL, PO, AP, AR, CASH MGMT, I-PROCUREMENT, PSB

Mass Cancellation Process Continued 1. Concurrent Request Program created by DBAs Henrico Oracle dba’s have worked with Henrico Finance to allow this program to be run as a standard concurrent program that can be run in 1 or 2 modes (Preliminary -Preview or Final –Actual process cancellations). 2. Program Output The program also produces an output that is reviewed before and after to document what PO’s are expected to be closed and also to identify any that the process could not cancel for some reason despite meeting the criteria. 3. Final Close or Cancel POs Any remaining PO’s that meet the criteria are then worked manually; often requiring Purchasing staff to use the standard Final Close method rather than Cancel.

HENRICO COUNTY DOUG BAUGH FINANCE PROJECT MGR ORACLE EBS 12.1.3 CURRENT MODULES INCLUDE: GL, PO, AP, AR, CASH MGMT, I-PROCUREMENT, PSB

DEFINING CRITERIA IN FUND SEGMENT DESCRIPTIVE FLEXFIELDS (DFF)

DEFINING THE CONCURRENT PROGRAM

RUNNING THE CONCURRENT PROGRAM (IN FINAL MODE)

Roles and Responsibilities • Controller’s Office responsible for

encumbrance reconciliation and encumbrance carryforward.

• Appropriations Resolution, adopted with

the budget, allows all outstanding operating encumbrances to be re-appropriated in the next fiscal year.

• Appropriations Resolution also allows us to

reduce any appropriation carried forward if the PO is subsequently cancelled or decreased.

LOUDOUN COUNTY LISA COCKRELL ACCOUNTING MANAGER ORACLE EBS 12.1.3 CURRENT MODULES INCLUDE: GL, PO, AR, AP, FIXED ASSETS, PROJECTS/GRANTS, I-EXPENSE, I-SUPPLIER

• Reconcile Encumbrance Detail Report to the Encumbrance Trial Balance at June 30.

• Issues we Found

– Encumbrance Detail Report is a moving target, does not report data as of a specified date, whereas the trial balance does, i.e. a change order in FY17 will change the open encumbrance balance on the report, but not the trial balance.

– Encumbrance Detail Report does not report negative encumbrances, trial balance does.

– User errors when two years are open for processing, i.e. PO is created in FY17 and the receipt is processed in FY16.

– Manual input of Encumbrance Detail Report into excel to compare to the trial balance takes a long time.

ENCUMBRANCE RECONCILIATION

ENCUMBRANCE RECONCILIATION

ENCUMBRANCE RECONCILIATION

ENCUMBRANCE RECONCILIATION

ENCUMBRANCE RECONCILIATION

Resolving Issues • User Training

• Manual Encumbrance JE’s in some cases

• New Reports being built in OBIEE to show open

encumbrances as of a specified date versus the trial balance

ENCUMBRANCE RECONCILIATION RESOLVING ISSUES

• We have tried carrying forward encumbrances two different ways

– System Carryforward Process (encumbrance & budget)

– Manually with Journal Entries

• After trying both ways, we decided to use different approaches depending on the fund:

– General Fund and Special Revenue Funds: we will use the system process to carry forward encumbrances, but do the appropriation with a manual JE so we maintain a balanced budget.

– Capital Funds: we will use the system process entirely as time saving effort.

CARRY FORWARD PROCESS

CARRY FORWARD PROCESS

CARRY FORWARD PROCESS

• Outstanding PO Close Process – Letter/E-Mail to all Directors

• Need to request exception to keep prior FY POs open to be received by end of April

• All CIP and Operating Account orders under $5,000 closed automatically

– User Discoverer Reports that show: • Open Blanket Releases • Open Orders by Budget, Project,

Grant, Number or Prefix

CITY OF VIRGINIA BEACH TRISH DONAHUE FINANCIAL SERVICES COORDINATOR ORACLE EBS 12.1.3 CURRENT MODULES INCLUDE: GL, PO, AP, FIXED ASSETS, HR, PAYROLL, OAB, OTL, ADI, & CASH MANAGEMENT

• All Contract POs created in prior FY – Sent to Finance Purchasing to be closed by Buyer (if applicable)

• All Standard PO or Release lines with no payments or partial payments – Mass Cancel Process

• All Standard PO lines with Zero Dollars remaining – Mass Close Process

• All PO or Release lines with dollars remaining – Sent to Finance Purchasing to be closed. If not created by central buyers, then technician in Finance Purchasing – changes document type to access documents owned by others to Final Close

• CENTRAL FINANCE PURCHASING BUYERS REQUESTED TO: – Correct Blankets in Rejected Status – Close Lines in Incomplete Status

OUTSTANDING PO CLOSE PROCESS CONTINUED

MASS CANCEL (FROM NAVIGATOR) MASS CLOSE (FROM CONCURRENT REQUESTS)

CHANGE DOCUMENT TYPE ACCESS TO ACCESS OTHER OWNERS DOCUMENTS FOR CLOSE OR CANCEL ACTIONS IN YOUR NAME NOTE: CHANGING TO FULL ACCESS ALLOWS ANY USER TO PROCESS CANCELS, CLOSE, REAPPROVE, ETC… ONLY TO BE USED AFTER HOURS BY QUALIFIED CENTRAL PURCHASING STAFF.

MANDATORY DUAL YEAR TRAINING – IF YOU DON’T TAKE, YOU LOSE YOUR PURCHASING RESPONSIBILITY BETWEEN FY OPEN AND PRIOR FY CLOSE

AP Alerts • Goods Received Date in July but GL Date on Invoice < July • Goods Received Date in June, but GL Date > June PO Alerts • PO Entered after June 30th with Old Year Number -16- • July PO with June GL Date • July Requisition entered with June GL Date • July Requisition auto-created to June PO • June or Prior Requisition entered after July 1 • June Requisition auto-created to July PO

Finance Purchasing reviews alerts on daily basis. If they feel that decentralized buyers are abusing authority during dual year – purchasing responsibility can be suspended for remaining dual year period.

ALERTS FOR DUAL YEAR

• Year-End Encumbrance Processing and Carry Forward Checklist Doc ID 144361.1

• Prerequisites when Performing Year-End Carry Forward Doc ID 144217.1

• EBS Procurement Community Link • Procurement Product Documentation Doc ID 67108.1

• Information Center: Procurement Suite Index – Doc ID 1391332.2

• Oracle E-Business Suite Support Blog for Procurement

• Purchasing Enhancement Requests, Doc ID 1282913.1

• Troubleshooting for Requisitions/Purchase Orders in Process or Pre-

Approved Status DOC ID 225017.1

• General Ledger FAQ for Encumbrances , Doc ID 358970.1

• EBS Procurement Encumbrance Accounting Analyzer Doc ID 1970384.1

ORACLE LINKS

Question and Answer Session • Raise your hand • When called on, provide:

– Your Name – Your Organization – Your System (eg. EBS 12.2) – Your Question

• If you are looking for a lengthy detailed

answer that will only benefit your organization – ask the question after the session.

FACILITATED DISCUSSION QUESTION/ANSWER PERIOD FACILITATED BY: ANDREA PHILYAW