myfloridamarketplace procure to pay overview · pdf fileprocure to pay overview ... purchasing...

System Overview Training

MyFloridaMarketPlace Procure to Pay Overview

Intended as an overview for Program Office/Field Office Staff that create requisitions and initiate payments.

• MyFloridaMarketPlace Overview

• Getting to Know your Vendor

• MFMP Basics

• Requisitions

• Receipts

• Invoices

• Invoice Reconciliation

• Managing Orders

• Vendor Performance Tracking (VPT)

• Resources

AGENDA

MyFloridaMarketPlace (MFMP)

Overview

• MyFloridaMarketPlace (MFMP) is the State of Florida’s eProcurement system. MFMP has been in operation for over ten years.

• The system is a source for centralized procurement activities; streamlining interactions between vendors and state government entities and provides tools to support innovative procurement for the State of Florida.

Objective

• This presentation provides an overview of information from beginning, (requisition) to end, (initiating payment) - a true P2P, procurement to payment system. For an in depth look at each section, refer to the MFMP Buyer Manual and MFMP U Online Training for additional training opportunities.

• Additional training materials are available in the MFMP U Catalog.

http://www.dms.myflorida.com/business_operations/state_purchasing/myfloridamarketplace/mfmp_university/manuals_and_job_aids

http://www.dms.myflorida.com/business_operations/state_purchasing/myfloridamarketplace/mfmp_university/agency_customer_training_registration/mfmp_u_online_training

http://www.dms.myflorida.com/mfmp/university/catalog

MFMP Benefits

• MyFloridaMarketPlace provides centralized procurement data for State Purchasing and Agency Departmental Purchasing

• Web-based, paperless application with 24/7 access

• All applications have a similar look and feel

• Electronic quoting features

• Reduced error rates

• Faster order processing time

• Captures and stores all content related to the transaction in one place (Procurement-to-Payment).

MFMP Buyer

• MFMP Buyer routes requisitions for approval for both catalog and non-catalog purchases. Requisitions become orders and are sent to vendors.

• Requisitions can be created and sent to MFMP Sourcing for electronic quotes for vendors.

• Vendors can submit invoices for payment as an eInvoice or agencies can create PO-based or Contract-based invoices.

• Invoices are sent for payment request to FLAIR, creating a full procure to pay cycle.

https://buyer.myfloridamarketplace.com/Buyer/Main

MFMP Sourcing

• MFMP Sourcing provides an automated way to create, launch, manage, evaluate, and award solicitations for goods and services.

• The Sourcing application is the platform for electronic quotes.

• Vendors must register through the Vendor Information Portal (VIP), add commodity codes to their account, and select ‘yes’ to receive solicitation notifications from Sourcing.

https://sourcing.myfloridamarketplace.com/Sourcing/Main?passwordadapter=PasswordAdapter1

MFMP Analysis

• MFMP Analysis provides the ability to build analytical reports using several different sources of information.

• Analysis includes data from:

– Buyer

– Vendor Information Portal (VIP)

– Florida Accounting Information Resource (FLAIR) payment and encumbrance information

https://analysis.myfloridamarketplace.com/Sourcing/Main

MFMP Vendor Information Portal (VIP)

• MFMP VIP provides Florida’s vendors with self-service tools for registration, account maintenance, performance rating reviews (VPT), and transaction fee reporting.

• Certified Minority Vendors can register and OSD certifies their accounts. Customer can search for vendors via specific certifications in Buyer and Sourcing.

• Agencies can search for vendors using the username and password ‘publicuser’. This is a public account.

https://vendor.myfloridamarketplace.com/vms-web/spring/login?execution=e1s1

Application Relationship with MFMP

MFMPBuyer

FLAIR

MFMPSourcing

MFMP Analysis

VBS

VIP

• MFMP Overview


• MFMP Basics

• Requisitions

• Receipts

• Invoices


• Managing Orders


• Resources

AGENDA

Vendor Accounts

• Vendors use MFMP VIP to manage all of their business information needed to do business with the state.

– E.g. Purchase Order receipt method and Remit-To Address(s).

• In VIP, customers can rate their vendors’ performance and vendors may view their rating and associated comments.

• Vendors view and pay their transaction fee in MFMP VIP.

https://vendor.myfloridamarketplace.com/vms-web/spring/login?execution=e1s1

Transaction Fee

• In 2003 Florida instituted, through Rule 60A-1 of the Florida Administrative Code (F.A.C.), a Transaction Fee for procurement transactions to provide funding for an electronic procurement system

• Transaction Fee Exemptions:– The Transaction Fee applies to all transactions that are not specifically

exempted in Rule 60A-1.032, F.A.C.

– Transaction Fee Exemptions can be applied when:

• Creating the requisition

• Creating an MFMP Contract

• Reconciling or Approving the Invoice Reconciliation (IR)

https://www.flrules.org/default.asp

https://www.flrules.org/default.asp

Certified Business Enterprise

• Florida's Office of Supplier Diversity (OSD) certifies the state's minority, woman and veteran-owned businesses.

• Certified businesses are listed on the OSD’s online directory and in MFMP Buyer and Sourcing.

• The OSD also provides technical assistance, training and targeted information about contract opportunities, special events and networking activities.

• For more information, please visit the OSD Website, call 850-487-0915 or email [email protected].

http://www.dms.myflorida.com/agency_administration/office_of_supplier_diversity_osd/certification

mailto:[email protected]

Vendor Inactivations

• Vendors control their registrations and can inactivate locations without letting MFMP know.

• To inactivate an entire account, vendors contact the MFMP Vendor customer service desk.

• Vendor ‘Inactivations and Invalid Data’ list distributed weekly. The workbook contains– Flagged For Inactivation: A list of all vendors inactivated the previous

week and vendors targeted (flagged) for inactivation the following month. This list displays inactivation dates and reasons.

– Contracts for Vendor Inactivations: A list of all Contracts issued to the flagged vendors.

– PRs for Vendor Inactivations: A list of all PRs issued to the flagged vendors

– Prior Inactivations: A list of all prior vendor inactivations since 10/2005.

• Vendor Inactivations: Buyer’s Guide

http://www.dms.myflorida.com/content/download/99381/573841/MFMP_U_Vendor_Inactivation_Buyer_Job_Aid.pdf

Vendor Training

• MFMP offers vendors several training channels, similar to agency customer training.

• The MFMP U for Vendors website contains online training, job aids, in-person training registrations, and many other useful resources.

• The MFMP team sends a quarterly email to all subscribed vendors with information about upcoming training, relevant system enhancements, and tips on maintaining their accounts.

• The MFMP team partners with the Office of Supplier Diversity (OSD) to offer MFMP training for woman, veteran, and minority owned businesses.

http://www.dms.myflorida.com/business_operations/state_purchasing/myfloridamarketplace/mfmp_university/mfmp_u_for_vendors

http://www.dms.myflorida.com/agency_administration/office_of_supplier_diversity_osd



• MFMP Basics

• Requisitions

• Receipts

• Invoices


• Managing Orders


• Resources

AGENDA

A need for a purchase is Identified

Is the item(s)

on a contract?

Requester initiates

requisition

No

YesPurchasing and management

review requisition

Requisition

approved

No

Yes

PO is electronically sent to the Vendor

Vendor delivers goods or provides services

Goods

Service

Create /award a formal solicitation or

eQuote

Requester/Clerk/ Finance &

Accounting Staff creates invoice in

MFMP

MFMP routes Invoice Reconciliation (IR) to the Requester/ On Behalf Of (OBO) for

approval of receipt of service

Physically receive product

Requester approves IR (Reconciles

invoice to services provided)

Requester/On Behalf Of (OBO) or Central Receiver completes MFMP receipt

MFMP routes the IR to the Exception

Handler

MFMP routes the IR to the Invoice Manager

Service Provided by Vendor

MFMP Routes IR to DFS if audited and to

FLAIR for payment

Warrant created/Payment sent to vendor and recorded in

MFMP

Procure to Pay Process

Delegation of Authority

• Delegation of Authority allows approval of requisitions, invoice reconciliations (IR) and receipts in a timely manner in your absence

• Requires supervisor approval

• Delegations begins at 12 a.m., Eastern time on the date selected and ends at 11:59 p.m. on the selected End Date

∗

Email Notifications

Requester Approver Exception Handler Invoice Manager

Requisition Requisition Invoice Invoice

Purchase Order Purchase Order Invoice Reconciliation

Invoice Reconciliation

Receipt N/A N/A N/A

Invoice N/A N/A N/A

Confidential Information

• Customers should not enter confidential information into MyFloridaMarketPlace. This includes:- Comments field

- Description

- Attachments

• Examples of common types of confidential information

Client /employee street address Email addresses

Telephone numbers Social Security numbers

Medical record numbers Health plan beneficiary numbers

Account numbers Certification or license numbers

∗

Methods of Procurement

• State term contracts (STC)

• Alternate Contract Sources (ACS)

• Competitive solicitations

• RESPECT of Florida

• PRIDE

• Single source

• Statutory exemptions

• Informal quotes

• Emergency purchase

Commodity Codes

• Florida uses the United Nations Standard Products and Services Code® (UNSPSC®) commodity codes

• UNSPSC codes are 8-digit codes – Hierarchical tree structure, which enables ‘drill down’ or ‘roll up’ analysis

– 4 levels:

• Segment

• Family

• *Class

• *Commodity

*MFMP uses the class and commodity levels exclusively

Raw Materials

Industrial Equipment

Components and Supplies

End Use Products

Services

Segments 10-15 Segments 20-27 Segments 30-41 Segments 42-60 Segments 70-94

Commodity Codes

• MyFloridaMarketPlace uses commodity codes to route invoices

• Commodity codes for services begin with “70-94”– The requester or “On Behalf Of” approves Service invoices

• Commodity codes that begin with a number other than “70-94” are goods– MyFloridaMarketPlace generates a receipt for all commodity

requisitions that needs to be completed by the requester or “On Behalf Of”

• Search for commodity codes on the MFMP website.

http://www.dms.myflorida.com/business_operations/state_purchasing/myfloridamarketplace/current_projects/myfloridamarketplace_commodity_code_governance_process

Object Codes

• The Statewide Expenditure Object Code – Six-digit code

– Represents a uniform classification of expenditures for use by all state agencies in FLAIR

– View list on the DFS website

• MFMP populates the object code on requisitions based on the commodity code selected

Commodity Code Name &Description

Object Code Name & Description

80161801: Photocopier rental or leasing service

442000: Equipment Rental - Copier

14111511: Writing Paper 341018: Supplies Office Consumable

25172500: Tires and Tire Tubes 241038: Repairs/Maintenance –Commodities Vehicles

http://www.myfloridacfo.com/Division/AA/links/default.htm



• MFMP Basics

• Requisitions

• Receipts

• Invoices


• Managing Orders


• Resources

AGENDA


Is the item(s)

on a contract?

Requester initiates

requisition

No


review requisition

Requisition

approved

No

Yes



Goods

Service


eQuote



MFMP








Handler




FLAIR for payment


MFMP

Procure-to-Pay Process

You are here

Creating Requisitions

Requisition (PR) - is a request to procure a commodity and/or service. Once the requisition completes the approval process, MFMP generates a PO and transmits it to the vendor.

MFMP assigns an unique identifying number to each requisition

• What do the numbers with different prefixes mean?• PR – Original purchase request number• A – Order and encumbrance number for encumbered

orders• PO – Order number for unencumbered orders• C – Order number for unencumbered order set up against

state term contract in MFMP• MA – Order number for unencumbered order set up against

state term contract that predates Sept 2011• RC – An automatically generated receipt that the requester,

central receiver, or OBO completes when they receive the commodity on an order

• IR – Invoice Reconciliation is the approvable in MFMP where requesters validate services

Prefix Reference

Catalog versus Non-Catalog

• State Term Contracts (STC) Items

– State Purchasing creates statewide agreements, State Term Contracts (STC) and Alternate Contract Sources (ACS).

– Use of STC are mandatory for state agencies.

– STC and ACS are available in the MyFloridaMarketPlace catalog.

• Non-Catalog Items

– Not listed in a line item or punchout catalog in MFMP.

– Must be manually entered in MFMP.

Impacts of Improper Requisitions

Requisitions set up improperly may impact:

• Delivery of commodity or service

• Change Orders

• Payment

• Reporting

Invoice is sent to customer

PO2080hr/

$75

Customer Creates a Purchase Order for

2,080hr@$75/hr=$156,000

PO is sent to Vendor Vendor Creates an invoice for 1 Month

Invoice

Check

Correct Line Item Setup

∗

Invoice is sent to customer

PO1yr@

$156,000

Incorrect Line Item Setup

Customer Creates a Purchase Order for

1yr@$156,000

PO is sent to Vendor Vendor Creates an invoice for 1 Month

Invoice

(160hr@$75=$12,000)?

Unit of Measurement does not match

∗


Is the item(s)

on a contract?

Requester initiates

requisition

No


review requisition

Requisition

approved

No

Yes



Goods

Service


eQuote



MFMP








Handler




FLAIR for payment


MFMP


You are here

What is an eQuote?

eQuote is a function of the MyFloridaMarketPlace (MFMP) Sourcing application.

• Buyers issue informal quotes (eQuotes) to a small group of vendors.

- Those vendors receive eQuote requests directly in their Inboxes as well as in Sourcing, and respond electronically to the eQuote within the Sourcing application.

When to use an eQuote

When do you use an eQuote?

• Launch your agency’s informal quotes in MyFloridaMarketPlace (MFMP) Sourcing for goods and services for:

- Purchases less than $35,000 (Category Two threshold).

- To request quotes off state term contracts.

- Methods of Procurement B, F and 16.

eQuote Overview

• There are two types of eQuotes– Integrated

– Manual

• What should I title my requisition and/or eQuote?– You may title your draft requisition per your agency standards and

when you link to MFMP Sourcing and complete your eQuote overview, you may change the title of the eQuote. Remember that the eQuote title should be concise and clear to your vendors.

• How do I determine the unit price for the requisition if I am trying to get a quote?– Unit Cost is required – Use historical pricing if available. If you use the

historical cost, eQuote provides a cost savings in the eQuote event after being awarded.

– Can insert an amount as little as a penny.


Is the item(s)

on a contract?

Requester initiates

requisition

No


review requisition

Requisition

approved

No

Yes



Goods

Service


eQuote



MFMP








Handler




FLAIR for payment


MFMP

You are here


Approving Requisitions

• Approvers Review for:– Management purposes

– Budgetary reasons

– Based on the "type" of request submitted

• Information Technology

• Operating Capital Outlay

• Legal Counsel

• Telecommunications

• Review that the request is necessary and appropriate.

• Review should include:– Justification

– Commodity Code and Object Code

– Method of Procurement

– State Term Contract number

– Attachments and Comments

Standard Workflows

• The standard workflow is set by the agency

• Catalog and Non-Catalog workflows are typically different

• Typical Catalog Workflows

• Typical Non-Catalog Workflows

Add Approvers to the Workflow

• Anyone can add an approver into the workflow

Requesters can only add an approver in parallel to the first approver.

Approvers have the ability to addanother approver anywhere in the workflow.

Approving Requisitions

• After reviewing the requisition, you can:– Approve the requisition

– Edit and change requisition before approving it

– Deny the requisition

• Denying a requisition sends the request back to the requester

• When denying, include a comment about why you denied the request



• MFMP Basics

• Requisitions

• Receipts

• Invoices


• Managing Orders


• Resources

AGENDA


Is the item(s)

on a contract?

Requester initiates

requisition

No


review requisition

Requisition

approved

No

Yes



Goods

Service


eQuote



MFMP








Handler




FLAIR for payment


MFMP

You are here


Receiving Commodities

Receiving is the process an agency uses to record the delivery of goods.

• Section 215.422, Florida Statutes, requires that agencies inspect and approve goods within five business days of the physical receipt.

• Commodity purchase orders generate receipts in MyFloridaMarketPlace.

• Two types of product receiving:

– Desktop: requester completes receipt.

– Central: more than one team member receives for an entire office or group of offices. The Requester is listed as a Watcher for Central Receiving.

http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0200-0299/0215/Sections/0215.422.html



• MFMP Basics

• Requisitions

• Receipts

• Invoices


• Managing Orders


• Resources

AGENDA


Is the item(s)

on a contract?

Requester initiates

requisition

No


review requisition

Requisition

approved

No

Yes



Goods

Service


eQuote



MFMP








Handler




FLAIR for payment


MFMP


You are here

Types of Invoices

There are three types of invoices in MFMP:

1. Electronic invoice (eInvoice) is a vendor-created invoice.

– View all vendors who support eInvoicing.

2. PO-based invoice is based on a purchase order.

3. Contract-based invoice is based on a MyFloridaMarketPlace contract.

– DFS requires you to attach a scan of the paper invoice in MFMP and to enter PO Start and End dates for all service invoices.

View the MFMP U Creating Invoices Online Training for more information on how to create an invoice.

http://www.dms.myflorida.com/business_operations/state_purchasing/myfloridamarketplace/mfmp_agency_customers/catalogs_and_einvoicing

http://www.myflorida.com/myflorida/MFMP_U_Creating_Invoices_-_Presenter_output/presentation.html



• MFMP Basics

• Requisitions

• Receipts

• Invoices


• Managing Orders


• Resources

AGENDA


Is the item(s)

on a contract?

Requester initiates

requisition

No


review requisition

Requisition

approved

No

Yes



Goods

Service


eQuote



MFMP








Handler




FLAIR for payment


MFMP


You are here

Invoice Reconciliation Basics

Defining Invoice Reconciliation (IR)

• Invoice Reconciliation is an action MyFloridaMarketPlace must take to process an invoice for payment.

– The process reviews and approves invoices for payment

– It is an “audit” of invoices

MFMP IR Process

Electronic invoices, PO-based and Contract-based invoices are entered in MFMP.

Invoice enters MFMP

MFMP pre-audits invoice

MFMP creates IR

Exception Handler

reconciles invoice

Invoice Manager approves invoice

Invoice Reconciliation pre-audit:

– Commodities – MFMP three-way match

PO – Invoice – Receipt

– Services – MFMP two-way match

PO – Invoice

The Exception Handler reconciles the invoice. The Invoice Manager reviews IR and approves the invoice for payment.

MFMP creates the IR and lists discrepancies or differences on the IR as “Exceptions”.

– For services, the IR routes to the Requester or ‘On Behalf Of’ to approve prior to the Exception Handler

– For goods, the IR routes to the Exception Handler

Approving or Reconciling Services

Invoice Reconciliations (IRs) for services route to the requester or the On Behalf Of (OBO) as indicated on the requisition. These IRs have to be “reconciled” and submitted to Approve the IR for payment. This process reconciles the invoice to the completed services.

• This applies to all requisitions which contain a commodity code beginning with 70-94, a service type commodity code.

• When approving services, make sure you comply to all of the DFS rules for services which includes the completion of a contractual services summary form or contract manager statement.– For more information see

• DFS CFO Memorandum 2012-2013 01.

• FACTS Website

http://www.myfloridacfo.com/Division/AA/Memos/cfo/2010s/CFOM121301.pdf

http://www.myfloridacfo.com/division/aa/FACTSReporting/



• MFMP Basics

• Requisitions

• Receipts

• Invoices


• Managing Orders


• Resources

AGENDA

Managing Orders

• Managing orders begins with searching and monitoring status of requests and orders.

• Managing orders continues with:– Monitoring PO Balance to ensure enough money remains to process

payments

– Creating change orders

– Reviewing invoices

– Viewing vendor payment information

Accessing Procure to Pay Information

All transactions in MFMP Buyer are tied together, to easily locate each item in the procure to payment process.

∗



• MFMP Basics

• Requisitions

• Receipts

• Invoices


• Managing Orders


• Resources

AGENDA


Is the item(s)

on a contract?

Requester initiates

requisition

No


review requisition

Requisition approved

No

Yes



Goods

Service


eQuote



MFMP








Handler




FLAIR for payment


MFMP


You are here

VPT Overview

• Vendor Performance Tracking (VPT) is the tool agency customers use to enter and monitor vendor performance on a per transaction level

• MyFloridaMarketPlace (MFMP) generates a survey after an invoice reconciliation (IR) moves to ‘Paid’ in MFMP

• Surveys generate for the following transactions:– State Term Contracts (STC)

– State Purchasing Agreements (SPA)

– Agency Term Contracts

– Other transactions equal to or above $2,500 (including governmental entities)

• To learn more about Vendor Performance Tracking and how to utilize this tool please view the MFMP U Vendor Performance Tracking Online Training.

http://www.dms.myflorida.com/business_operations/state_purchasing/myfloridamarketplace/mfmp_university/agency_customer_training_registration/mfmp_u_online_training/articulate_files_agency/state_purchasing_training

Rating Details

• Survey scores are calculated using a 5 year average

• Vendors can access ratings through their registration in the Vendor Information Portal (VIP)

• MFMP posts vendor performance ratings to the State Purchasing website quarterly. http://www.dms.myflorida.com/vptreports– Only vendors with ratings display on report

– Scores display for each of the four categories

http://www.dms.myflorida.com/vptreports



• MFMP Basics

• Requisitions

• Receipts

• Invoices


• Managing Orders


• Resources

AGENDA

Resources

• Online resources at www.MyFloridaMarketPlace.com include MyFloridaMarketPlace and System Administrator manuals, training information and more.

• MyFloridaMarketPlace University– Recommended Online/in person Trainings include:

• MFMP System Overview

• Buyer eQuote

• Creating Requisitions or Requisitioning 101

• Approving Requisitions

• Managing Orders

• Receiving Goods and Approving Services

• Creating Invoices

• Searching for Vendors in VIP

• Vendor Performance Tracking

• Understanding Transaction Fees

http://www.myfloridamarketplace.com/

http://www.dms.myflorida.com/business_operations/state_purchasing/myfloridamarketplace/mfmp_agency_customers/mfmp_university

Resources

• Register for MFMP training at: www.dms.myflorida.com/mfmp/agencycustomer/registration

• Training environments allow you to practice what you learn.– MFMP Training Environment https://trn-buyer.myfloridamarketplace.com/Buyer/Main

– The username is the same as your regular login.

– The password is: “train30”

– The Training Environment contains transactions created in MFMP.

http://www.dms.myflorida.com/mfmp/agencycustomer/registration

https://trn-buyer.myfloridamarketplace.com/Buyer/Main

Contact Us

Contact the MyFloridaMarketPlace Customer Service Desk at:

Phone: 866- 352-3776Email: [email protected]: Monday – Friday,

8:00 a.m. – 6:00 p.m., Eastern time

Or through the Customer Assistance Request (CAR) Form.

mailto:[email protected]

https://vendor.myfloridamarketplace.com/vms-web/spring/customerassistancerequest?execution=e1s1

myfloridamarketplace procure to pay overview · pdf fileprocure to pay overview ... purchasing...

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