procure to pay reports

Business Services

Procure to Pay ReportsDelivered by: Cindi Stinebaugh & Susie Geswein

June 2009

Business Services

• Objectives• Resources• Open PO Report• Blocked Invoice Report• GR/IR• Open Commitments• Vendor Invoices

Course Content

Business Services

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

to pay• Understand how purchase orders flow through

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

them

Course Objectives

Business ServicesResources

• Purchasing Home Page— http://www.purdue.edu/purchasing/

• SRM Instruction Manual— http://www.purdue.edu/purchasing/SRM/srmInstructionsManual.html

– Section 11—Open PO Report– Section 13—Blocked Invoices– Section 14—Purchase Order Commitments

• Process• Instructions

– Section 15—Procure to Pay• Showcase• Postings• Reports Process

http://www.purdue.edu/purchasing/

http://www.purdue.edu/purchasing/SRM/srmInstructionsManual.html

Business Services

• B@P— https://www2.itap.purdue.edu/bs/BPP/public/view_moduleInformation.cfm?view=mod83&name=Placing%20an%20Order

• Business Manager Task Checklist (Purchasing Tab) — http://www.purdue.edu/BS-BA/Training/index.html

Resources

Business ServicesProcure to Pay Postings

Business ServicesReviewing Reports

• Order of Review• Expectations for this fiscal year• Use online report, but make notes on paper

report

Business ServicesOpen PO Report

• This report will display all purchase orders (by line item) that have not been confirmed in SRM (including partial receipts). This report is closely related to T-code ME23N, which is where users can see details for the orders found on this report.– Exception: Guy Brown (1521), University Stores,

Printing Services orders are excluded from this report because they do not need to be received in the system.


• 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 by Business Office and if necessary the Receiver


• Review list for your area• Confirm in the system, those PO’s that items

were received in acceptable condition and payment should be made.

• DO NOT confirm in the system any PO’s that have NOT been received

• http://www.purdue.edu/onepurduehelp/nav/finance%20_fi_/purchasing/file562/index.htm


• Benefits of keeping up with this report– will remove/stop these PO’s from showing up on

the blocked invoice list unless they are out of tolerance

– will help keep outstanding commitments under control

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

Business ServicesME23N—SRM Purchase Order

• Account Assignment Tab• Purchase Order History Tab• Commitments for this PO

Business ServicesBlocked 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 are not confirmed

• ZFI_BLOCKED_INVOICE– Report should be reviewed by the Business Office

and Requisitioner if necessary

Business Services

Blocked Invoice Report• Review the list and determine if ok to pay

– Compare to Open PO Report to see if issues are outstanding

– Confirmation needed in system?– Credit memo needed from vendor?– Form 26 needed?

• How to relieve a blocked invoice—Section 13


• Benefits of keeping up with this report– Should clear GRIR issues for that PO– Timely vendor payments

• Keep shipments coming• Help with negotiating better pricing in the future

Business ServicesGRIR Clearing Report

• ZFI_GR_IR_CLEARING• GRIR=Goods Receipt Invoice Receipt• Purchasing/AP manages this report for the

University, but this can be a good resource for business offices– Resolution comes from the BO

• If items are in the GR/IR account, there could be an affect on your financial statements

Business ServicesGRIR Clearing Reports


• Should be reviewed by Business Office and Receiver if necessary– Review outstanding entries (oldest first)– Use ME23N to see what has happened (double

click PO #)– Compare against Open PO & Blocked Invoice

notes


• Report shows Action=Invoice Receipt (IR) Needed– Scenario 1—Goods Receipt Qty=1, Invoice

Receipt Qty=1, Credit Memo Qty=1• If item was returned to vendor, and no replacement

being provided, process RETURN DELIVERY in SRM


• Report shows Action=Invoice Receipt (IR) Needed– Scenario 2—Goods Receipt Qty=3, No Invoice

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

DELIVERY in SRM• If Goods Receipt Qty=3 is accurate, then contact vendor

for invoice for Qty=3


• Report shows Action=Goods Receipt (GR) Needed– Scenario 1=Goods Receipt Qty=3, PO Qty=3,

Invoice Receipt Qty=5• Check notes from Blocked Invoice Report. See if

actions are in process to clear• This scenario should have already been worked on

Blocked Invoice Report


• Report shows Action=Goods Receipt (GR) Needed– Scenario 2=No Goods Receipt, PO Qty=1, Invoice

Receipt Qty=1• Check notes from Blocked Invoice Report. See if

actions are in process to clear• This scenario should have already been worked on

Blocked Invoice Report


• Report shows Action=Quantity Issue – Scenario 1=Goods Receipt Qty=5 > Invoice

Receipt Qty=3• Verify quantity actually received

– If GR is correct, contact vendor for remaining invoice receipt qty.

– If GR is incorrect, process RETURN DELIVERY for the difference


• Report shows Action=Quantity Issue – Scenario 2= Invoice Receipt Qty=4 > Goods

Receipt Qty=2• If GR correct, contact vendor for credit memo or

additional items• If GR incorrect, confirm additional qty in SRM

Business ServicesGRIR Report

• Benefits of keeping up with this report– Account balances may not be accurate, if there are

blocked invoices, or situations where the GR/IR is out of balance.

– Promotes work time efficiency– Unpaid vendors might delay delivery of other open

POs

Business ServicesOpen Commitments

• This report lists open po commitments• FMRP_RFFMEP1AX—

(variant=COMMITMENTS)• This report should be reviewed by the

Business Office– Review the issues from your other lists and mark

off this list so you do not review the same issues


• This report should catch two-way match vendors with open commitments (i.e. Guy Brown, Printing Services)

• Open Commitment Instructions—Section 14

Business ServicesVendor 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.

• B@P News article— http://www.purdue.edu/business/bpnews/News_Releases/Buying/General_Info/newVendorInvoiceReport.html


• ZFI_VENDOR_INVOICES

Business ServicesClosing 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 can still be paid.

Business Services

Questions?

procure to pay reports

Documents