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Streamline, Expedite and Control

the Inventory Receipt to Pay

Process

Ben McCormick CISTECH General ManagerBen.mccormick@cistech.net

Jim BoyerCISTECH Senior Business ConsultantJim.boyer@cistech.net

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Process Overview• Receive at Dock

• AP Matching

• Reconciling Receipts not Invoiced

• Payment

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Benefits of a Streamlined Process

• Increased warehouse efficiencies

• Improved inventory accuracy

• Inventory visibility leads to improved uptime andbetter delivery

• Improved terms / cash flow

• Improved AP reporting – less errors• Less cost to pay vendors (checks and labor)

• Fewer AP ‘surprises’

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Receiving Process

Reduce labor required to receive

Improve Visibility of Inventory 

Speed process

Deliver required information for AP

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5

Supplier Portal:

‘Negotiation’ scenarioBuyer

Place the PO Review change

Accept change

See SupplierAccept

See ShipmentNotification

Supplier

• View the PO

• Propose change (qty, date)

• See Customer Accept

• Vendor Acknowledgement (VA)

• Shipping Notification (ASN)

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• Select multiple lines• Create attachments

• Short Shipment

creates request for

backorder• Creates Shipment

notice, visible in

Power Link

(Procurement,

Materials Mgmt)

Send shipment notice

PALLETS CRATES

Boxes

(Advance Ship Notice)

(Fedex, UPS #)

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Streamline Your Receiving Process

Process starts at vendor site!

• Buyer can use the attachment feature in

Supplier Portal for barcode labels

• Vendor accesses Portal, prints out your 

label, and applies to your inventory for

processing receipt

• Every receipt is the same

 – Scan to receive

• RF Handheld OR Keyboard Wedge

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• Bar coded labels with

Item and PO… – Used for receiving and

inventory transactions

• Attach to PO – vendoraccesses barcode

attachment on Portal

• Supplier can print asmany as they need on

their local printer

Item labels

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Vendor Accesses Barcode Attachment on Portal

PO

Comments

Supplier Comments

Two-way attachments

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Receive By

• Shipment Notice

• Purchase Order

• Item

• Release

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11

Receive via RF Gun

• CISTECH has written

all IM transactionsfor RF Gun use

• Can do RD or RPtransaction via RFGun at the dock

• Real time receipt

1/02/10 10:26:42

RF Menu

1 (IP) Planned Issue

2 (IS) Misc. Issue

3 (RC) Misc. Receipt

4 (RM) Recpt from Mfg

5 (RP) PO Rcpt to Stck6 (SM) Scrap from Mfg

7 (SS) Scrap from Stck

8 (TW) Warehouse Xfer

9 (IU) Unplanned Issue

F3=Exit

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Shipment Notices (Option #2)

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Shipment Notice / Details

Header Container

Items

Shi

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Shipment Items

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Scheduled Receipts

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AP Matching Process

Reduce AP Errors

Reduce labor required to match and 

reconcile

Speed AP match process

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Generate Vendor Invoices

• Invoice on Receipt

• Shipment Number

• Purchase Order number

• Vendor Packing Slip Number

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Invoice on Receipt

AP

InvoiceBatch

PurchaseOrder

Receipt

Vendor

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Invoice on Receipt

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3 Way Match

APInvoice

Batch

PurchaseOrder

Receipt

Vendor

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3 Way Match

Enter Packing SlipInvoice NumberInvoice Date

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The Packing List Content Is

Selected Or Displayed

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Generate 3 Way Matched AP

Vouchers

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Buyer Managed Discrepancies

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Reconciling Receipts not Invoiced

Improve RNI accrual accuracy 

Reduce labor required to reconcile

 Avoid AP surprises

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AP Pending Flow

•

Purchasereceipt

• Include PL #

Create

IMHIST

• Create invoicematch

• Include PL#

Post invoice•

Print APPReport

• Paper orSpreadsheet

Un-invoiced

receipts details

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APP Configuration Record(s)

• Parameters

 – Lists or individual warehouses

 – Item Types

 – Inventory codes

 – Output types

 – Defaults – Headings

 – Etc…

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PowerLink Output

29

R7

+

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CISTECH REPORTING PUTS IT ALL TOGETHER !!

CONNECTS THE XA RECEIVING TRANSACTIONWITH THE IFM A/P INVOICE FOR A PARTICULAR RECEIPT.

VALIDATES THE CA-COST ADJUSTMENT BOOKED TOTHE COMPANY P&L ACCOUNTS !

CISTECH AP PENDING REPORTING

IM Receipt Detail linked to IFM Invoice Transactions reveals the CA Variance Amounts and QUICKLY ANSWERS VARIANCEQUESTIONS and quickly proves what went INTO and what was moved OUT OF the AP Pending Accounts!

ABC Mfg Company

 XA IM RP TRANSACTIONS  XA IFM AP TRANSACTIONS

Receipt & Invoice

LET’S LOOK AT AN EXAMPLE

RP/PQ Receipt Transaction

1200 Raw Material Inventory $154,620.00

2001 Un-Invoiced Rec/AP Pending $-154,620.00

IFM API Transaction

2002 AP Clearing $168,120.00

2000 AP Trade $-168,120.00Instant CA Txn Created for “I” AP Txns

2001 Un-Invoiced Rec/AP Pending $154,620.00

5100 PPV/Cost Adjustment $ 13,500.00

2002 AP Clearing $-168,120.00

The APP Report

proves my entries !

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Vendor Payment

Reduce labor required 

Reduce check costs with electronic payment 

Schedule payments to improve cash flow 

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NACHA Interface Bridge

• Convert Payment List Data to NACHA

 – Payments

 – Invoice Details

• E-mail Remittance Data

• Generate Pre-note Data

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Generate Payment Data

Review Edit

Generate E-mail / Documents

Upload or FTP data toSending Financial Institution

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Formatted Remittance Documents

I i S

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35

Invoice Status

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EFT Benefits

Eliminate the need for Pre-Printed, or Electronic Check Forms

Eliminate some of the major costs of Check Printing,

Employee time, toner, preparation.Eliminate mailing costs for IFM AP Checks and Remittance

Detail.

Provide the Vendor with immediate payment detail.

Creates a file of the Payment Information, TAILORED FOR

YOUR BANK(S) EFT/ACH, that is easy to submit via the

Internet or the Banks FTP site.

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Benefits of a Streamlined Process

• Increased warehouse efficiencies

• Improved inventory accuracy

• Inventory visibility leads to improved uptime andbetter delivery

• Improved terms / cash flow

• Improved AP reporting – less errors

• Less cost to pay vendors (checks and labor)

• Fewer AP ‘surprises’

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Summary

• Supplier Portal

• MM Scheduled Receipts / Shipment Notices

• IFM A/P Invoice Processing Tools

• Accounts Payable Pending Reporting

• EFT for IFM

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Summary

• Save Time $

• Reduce Errors $

• Improve Performance $

• Improve Communications $

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THANK YOU FOR YOUR SUPPORT OF OUR

TUESDAY SESSIONS! 

Ben McCormick 

704-814-0016

Ben.mccormick@cistech.net