u.s. bank corporate payment systems payment plus
Post on 20-Dec-2015
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U.S. Bank Corporate
Payment Systems
Payment Plus
• Low Value-Low Dollar (<$2,500)• Emergency Purchases• Low Need for Control• Common Card Commodities• Minimal Systems Integration• High Supplier Card Acceptance• Low/specialized Data Needs
• Medium Dollar ($2,500 - $10,000)• Inventory/Contracted Purchases• High Control Requirements• Systems Integration
Requirements• Additional Float• Supplier Card Acceptance• High Data Needs
• High Dollar (>$10,000)• Inventory/Contracted
Purchases• High Control Requirements• Systems Integration
Requirements• Additional Float• Potential Financing• Minimal Supplier Card
Acceptance• High Data Needs
Tra
nsa
ctio
n S
ize
Complexity/Control
High
High
Low
Low
B2B Payment Continuum
TraditionalPurchasing Card
Access OnlinePayment Plus
PowerTrackPayables
Payment Plus• Provides new tools and technology that leverage the purchasing
card platform and enable settlement of larger, more complex payments
Features– Virtual Accounts
• Per supplier pre-authorized limit (PAL) accounts• Per transaction single-use account (SUA) pools
– Dynamic Limits• Accounts are closed with no available credit until payment is authorized
– Accounts Payable Integration• Automated Payment Instruction File• Online Forms for one-off payments• Email & Virtual account stored in Access Online Client Supplier Information
– Automatic Matching & Reconciliation support• Reports & Extracts
Payment Plus• Provides new tools and technology that leverage the purchasing
card platform and enable settlement of larger, more complex payments
Benefits– Improve Cash Management
• Days Payable Outstanding and Cash Float• Support Strategic Sourcing
– Increased Rebate• Non-traditional Purchase Card spend
– Improved Control• Payments authorized when you provide instruction• Accounts open only when payment is outstanding• Limits increased to amount of payments only
– Automated Reconciliation• Leverage existing systems and processes
Payment Plus Process FlowPayment Plus Process Flow
Client
U.S. Bank
Supplier
Create ApprovedPayments /Upload
Payment Instruction File
Process Transaction
Confirm Supplier Notification (Optional)
Generate Reconciliation
Report/File Extract
Reconcile Transactions Using
Access Online Report/File Extract
Open Accounts/ Adjust
Credit Limits
Load Payment Instructions to U.S.
BankAccess Online
Generate/SendPayment
Notification to Supplier/Buyer
Post Transaction in Access Online and Match to Payment
Instruction
Creating a Payment
• What is required?– Vendor Name & ZIP– Vendor email address– Payment Amount– Control Number– Expiration (good until) date
• How is a payment instruction entered?– Automated Input Load File
• Flat text, fixed field length, multi-row file• 01 Record – Payment Total, Control Number, Exp Date, Supplier Name & ZIP• 06 Record – Supplier Email, Client Vendor ID, Comments• 07 Record – Invoice number and amount
– Online Form• Delegate to multiple users• Form is customizable
Supplier Enablement
• Accounts Payable Analysis– Identify Target Suppliers
– Visa/MC capable merchants
– Suppliers w/out special terms
• U.S. Bank resources– Dedicated Supplier Enablement Managers
– Let U.S. Bank contact suppliers
– Clients can take on as much or as little of supplier enablement as desired
• Elavon Merchant Services– Help suppliers lower fees or enhance data capture
Supplier NotificationSent: Tuesday, April 15, 2008 12:03 PMTo: [email protected]: [email protected]: Purchase authorization for Payment # 242424422
Verizon is now authorized for the next 20 days, to charge the credit card account ending in 2712 for the following customer: Customer Name: U.S. Bank For a total Amount of: $10296.46 This Payment covers the following Invoices: Invoice Number: Invoice Amount: 673422 2356.47 673423 3854.34 673424 4085.85Also, for the best and most efficient results, please process this charge amount in a single transaction within 72 hours of receiving this notification. Thank you.* If you have any further questions, comments, or concerns regarding this matter, please direct them to Bob Smith at 555-333-1234. DO NOT REPLY TO THIS EMAIL MESSAGE. * *** THIS E-MAIL ADDRESS IS USED BY AN AUTOMATED SYSTEM AND RESPONSES ARE NOT MONITORED. ***
– Current Process
– Payment Plus Process
Receive Invoice Process Payment
DR CR
Expense Vendor/AP Liability
$1,000 ($1,000)
DR CR
CashVendor/AP Liability
$1,000 ($1,000)
DR CR
Expense Vendor/AP Liability
$1,000 ($1,000)
Receive Invoice Process Payment Pay U.S. Bank
DR CRU.S. BankLiability
Vendor/AP Liability
$1,000 ($1,000)
DR CRU.S. BankLiability
$1,000 ($1,000)
Cash
Receive
Match File
Accounting Process
Payment Reconciliation
• Reconciliation model is similar to reviewing a DDA in traditional check or ACH process (e.g. Positive Pay)
• Access Online Auto Matches Payment Instructions to transactions from Level II capable suppliers
• Access Online Reports, Statements, and Extract Files are the same as a traditional Purchasing or One Card
• Dedicated Reports for Payment Plus– Payment Instruction Detail– Payment Instruction Analysis– Billed Transaction Analysis with Payment Instruction Detail
Payment Plus Payment Instruction Analysis Example
Payment Plus Payment Instruction Analysis Example
Payment Plus Billed Transaction Analysis w/Payment Detail
Payment Plus Billed Transaction Analysis w/Payment Detail
Payment PlusFull Transaction & Order Detail
Implementation & Next Steps
• Standard Purchasing Card contract or Master Agreement covers Payment Plus– 3 or 5yr deal– No fees, entry or early termination– Rebate based on total volume, avg. transaction size, and speed of pay
• U.S. Bank Implementation Project Manager is assigned to coordinate weekly limits and manage a customized project plan
• Tasks include:– Identify target suppliers– Establish new billing company & Payment Plus virtual accounts– Add payment type to client AP system & flag vendor master for target suppliers– Develop Payment Instruction File out of AP (if using automation)– Establish file link (FTP) with U.S. Bank (if using automation)– Add financial extract file or report for posting to GL and settling w/U.S. Bank
• 2-4 weeks for Online Payments, 6-8 for Payment Plus w/AP Automation