procure to pay best practices 140520062029 phpapp01
DESCRIPTION
Oracle p2p best practicesTRANSCRIPT
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Best Practices in PeopleSoft ProcurementSRM PUG February 2008Alexa DhillonPeopleSoft SRM Product Strategy [email protected]
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The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Safe Harbor Statement
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Leveraging Best Practices Across Procurement
• Benefits of Integration to Your Organization:• Reduce Spend on Goods and Services• Greatly reduced processing costs• Less Time on Non-Value Add Activities• Stronger internal controls• Better visibility into the entire process• Better communication across parties to optimize
decisions and strategies
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Procurement Best Practices Getting a Return on Your Investment
• Compliance • Enforce Negotiated Terms• Legal and Organizational• Drive Contract Compliance
• Streamline Processing • Increase process effectiveness
• Extend Procurement Automation to Suppliers• Free Buyers and Payables Clerks to Focus on more Strategic Activities
• Greater Business Insight / Analytics • Gain deeper insight into spending• Enhanced, Configurable Reporting to Meet User Needs
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Procurement Best Practices Getting a Return on Your Investment
• Compliance • Procurement and Supplier Contracts
• Streamline Processing • Procurement Cards• eProcurement Approvals
• Extend Procurement Automation to Suppliers• eSupplier Connection and Evaluated Receipt Settlement
• Greater Business Insight / Analytics • SRM Dashboard
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Source Purchase Settle
• Supplier Selections• Negotiations and Agreements
• Requisitions• Approvals• Purchase Orders• Acknowledgments
• Receipts • Procurement Cards• Vouchers / Invoices• Matching• Payments
Manage Suppliers & Contracts• Supplier Performance • Expirations & Renewals
Procurement Contracts
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Supplier ContractProcurement Contracts vs. Supplier Contracts
• Procurement Contracts• Part of Core Purchasing• Focuses on execution of
contract• Captured key information
to support execution• Does not have true legal
contract document will all terms and conditions
• Available for all releases
• Supplier Contracts• Separate Module• Integrates with Core Purchasing• Focuses on Document side of
Contract with MS Word Integration• Has structured clause library,
rules-based authoring, approval workflow, etc.
• SLA and Deliverables Management for contract compliance
• Supports powerful contract searching
• Starting in Release 8.9
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Procurement Contracts Best Practices for Purchasing Contracts
• Automate sourcing and releases buyers from routine work • Enforce Contract Usage• Ensure contract pricing and take advantage of volume
pricing • Use contract expiration and maximum amount notification • Generate fewer purchase orders • Track contract spend
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Procurement ContractsTips for Getting Started
Set Up• Contract Set Controls• User Preferences• Item / Vendor
Relationship
Contract• Create Contract• Generate Document
(Supplier Contracts)• Approve• Generate Releases• Notifications• Review Contract Events,
Analytics, SLAs
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Purchasing Contracts
Recurring Vouchers
Both
• Purchase Order
• Release to Single PO Only
• Recurring Voucher
• Recurring PO Voucher
• General
Procurement Contract Process Options:
Procurement ContractsContract Process Options
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Procurement ContractsPurchase Order vs. Single PO Contracts
• Use Purchase Order Contract when• You want separate purchase orders for each of your contract
releases• You want to be able to close your POs once your order is received
and paid
• Use Single PO Contract when• You or your supplier would like the convenience of tracking,
receiving, and vouchering against one PO• You are using PeopleSoft Release 8 SP2 or higher
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Procurement ContractsPurchasing Contracts
• Master Contract Association – Track and Inquire across multiple contracts
• Open Item Reference – Eliminates need to define individual items on a contact
• Corporate vs. Non-Corporate Contract – Lower maintenance by sharing contracts across multiple business units
• Price Adjustments – Permits volume discounts• Automatic Association of Contract onto PO – Ensure contract
compliance• Inquiries and Reports• Dashboards and Analytics – View trends, usage, and opportunities• Milestones, Notifications, Minimum and Maximum Edits …
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Procurement ContractsGenerating Releases from Contract to Purchase Order
Contract
Planning(Planned Orders)
Releases
Contract PO Process
PO Calc & PO Create
Purchase Orders
Requisition
Other External Sources
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Procurement ContractsManually Referencing Contract on Requisition
Contract
Planning(Planned Orders)
Requisition Selection
PO Calc & PO Create
Purchase Orders
Requisitions with Contract
Other External Sources
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Procurement ContractsPO Calc Looks for Available Contract if None Specified
Contract
Planning (Planned Orders)
Requisition Selection
PO Calc & PO Create
Purchase Orders
Req without Contract
PO Stage Process
Other external Sources
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Procurement ContractsManually Associate Contract on Purchase Order
ContractPurchase
Order
Purchase Order
Purchase Order
Select Contract on PO Line, or Copy entire Contract into PO
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Purchasing ContractsProcess Flow
Conduct Negotiation
Analyze and Award
Requisition
Contract / Document /
SLAs
Consolidate Demand
Accrue / RelieveEncumbrance
Purchase Order
Integrated Contracts Enforce Negotiated Terms and
Operational Compliance
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Procurement Contracts Recurring Voucher Best Practices
• Scheduling Vouchers for Repetitive Payments • Automatic Invoice Number Generation• Retention – Ensure project completion before paying full
amount• Master Contract Association, Miscellaneous Charges,
Milestones …• Tracking and Reporting
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Procurement ContractsRecurring Voucher Releases
Recurring Voucher Releases Voucher Build
VoucherVouchers
Create Vouchers on an as-needed basis• Stage all releases up front, create vouchers as needed, or• Stage and create vouchers as needed
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Procurement ContractsRecurring PO Voucher
Contract$12,000
Purchase Order $12,000
Voucher $4,000
Voucher $4,000
Voucher $4,000
• Encumber funds on Contract prior to Voucher Creation
• Applies to Voucher Contracts, and organizations using commitment control
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Supplier Contract ManagementWhat Is It?
Create and Enforce Better Supplier Contracts
Contract Document AuthoringContent Management Lifecycle
Management
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Supplier Contracts : Monitoring & SLAsEnforce Contract Compliance
Automatic Spend Threshold Notifications
Proactive Performance Monitoring
All policy deviations are reported to approvers alongside clause deviations in the Contract Deviations Report, guiding approvers to exceptions in the contract along with the standard values.
Track Spend & Performance:Easily Track SLAs:• % of quality receipts• % Correct Receipt Qty• % On-time deliveries• % Total Ordered versus
Received
• Define On-Time Metrics • Associate to contract• Update metric based on
receipts• View Results In Contracts
Monitor
• Monitor contracted Service Level Agreements with suppliers and take corrective actions
• Understand current spend vs. contract ‘at-a-glance’ and accelerate or reduce spend accordingly
Procure-to-Pay for Goods & Services
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Supplier ContractsRequest Document
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Supplier ContractsContract Request Document
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Source Purchase Settle
• Supplier Selections• Negotiations and Agreements
• Requisitions• Approvals• Purchase Orders• Acknowledgments
• Receipts • Procurement Cards• Vouchers / Invoices• Matching• Payments
Manage Suppliers & Contracts• Supplier Performance • Expirations & Renewals
Procurement Cards
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Procurement CardsBest Practices
• Reduce the cost associated with vendor set up, processing invoices/payments to vendors
• Efficient management of cash flow• Increase Rebate Potential• Improve Controls (Policies and Procedures, Spend
monitoring)• Automate Reconciliation• Faster Payment to Vendors• Global Acceptance
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Procurement CardsProcess Flow
USBank & VISA InfoSpan Statement Layout
Misc. Statement Layout
Procurement Card Stage Process
Inbound File Publish Process
Load Statement Process
Statement Notification Process
Reconcile Transactions
Voucher Stage Process
Voucher Build Process
Budget Check and Post
Requisition with Procurement Card
as Payment Method
Vendor Ghost Card
PO with Procurement Card
as Payment Method
Dispatch PO
Streamline Business Process by
Automatically Matching Incoming Bank Statement with Purchase Order
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Procurement CardsGhost Card on Vendor
• Vendor Ghost Card can automatically be used as a Payment Method on Requisitions and POs
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Procurement CardsReconciling Statement
• View Transactions of all Users for which Role has Authority
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Source Purchase Settle
• Supplier Selections• Negotiations and Agreements
• Requisitions• Approvals• Purchase Orders• Acknowledgments
• Receipts • Procurement Cards• Vouchers / Invoices• Matching• Payments
Procurement Analytic Tools• Supplier Performance • Expirations & Renewals
eProcurement Approvals
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Simplified Requisition ProcessingManage Requisitions – Release 8.9
Visibility into Entire
Requisition Lifecycle
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Simplified Requisition ProcessingApproving Requisitions Made Easier – Release 8.9
Mass Approvals
Expandable Requisitions
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Simplified Requisition ProcessingEmail Approvals – Release 8.9
Approve Without Approve Without Logging into Logging into ApplicationApplication
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Source Purchase Settle
• Supplier Selections• Negotiations and Agreements
• Requisitions• Approvals• Purchase Orders
• Receipts • Procurement Cards• Vouchers / Invoices• Matching• Payments
Manage Suppliers & Contracts• Supplier Performance • Expirations & Renewals
Advanced Shipping Notice / Evaluated Receipt Settlement (Using eSupplier Connection)
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Advanced Shipping Notice / Evaluated Receipt SettlementBest Practices
• Streamline Receipt Creation Process by having your Vendors Send Advanced Shipping Notices (ASN)
• Generate Vouchers without Waiting for Vendor Invoice using Evaluated Receipt Settlement (ERS)
• Enables Touchless Receipt and Voucher Creation to reduce data entry time and errors
• Useful for vendors with whom you have a trusting relationship
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Advanced Shipping Notice / ERS Process Flow
PO Entry/Approval
PO Dispatch
Receive by ASN
View PO Information
Ship & Record ASN with Invoice ID
Buyer Side Supplier Side (eSupplier Connection)
Review Shipment History
PO Acknowledged Acknowledge PO
Voucher Build
Voucher / Matching
Payment Review Payment
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eSupplier ConnectionSupplier’s Dashboard
Visibility into Transaction History and Supplier’s
Performance
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eSupplier ConnectionAdvanced Shipping Notices
• Supplier Creates ASN On-Line
• Alternatively, ASN loaded through EDI
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eSupplier ConnectionInvoice and Payment Details
Suppliers View Transaction Details On-Line
Frees Buyers to Focus on Strategic
Activities
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eSupplier ConnectionSupplier Performance Metrics
• On time performance
• PO/Receipt Quantity Performance
• Quality Performance
• Quantity Performance
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Source Purchase Settle
• Supplier Selections• Negotiations and Agreements
• Requisitions• Approvals• Purchase Orders• Acknowledgments
• Receipts • Procurement Cards• Vouchers / Invoices• Matching• Payments
Procurement Analytic Tools• Supplier Performance • Expirations & Renewals
SRM Dashboard
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Supplier Relationship ManagementInsight-Driven Business Processes
BusinessInsight
• Expanded KPIs for buyers and managers• Summary metrics at business unit level• Supplier performance analytics pagelet
SRM Dashboard
Collection of pagelets and metrics presenting aggregated view of source-to-settle business process
for Buyers and Managers
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SRM DashboardPagelets and Metrics in Release 8.9
Activity Monitor Displays Buyer’s Current Task List
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SRM Dashboard Pagelets and Metrics in Release 9.0
98% for period 7/06, Total Schedule Lines: 12
Mouse over bar indicates amount and total number of schedules for period
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SRM DashboardSpend by Business Unit
Total Spend by BU
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SRM DashboardSpend by Business Unit
Filter and View Schedules
Drill into PO
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Supplier Relationship ManagementSRM Dashboard – Spend by Category
Category Spend Broken Down by Vendor
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Procurement Best Practices Getting a Return on Your Investment
• Compliance • Procurement and Supplier Contracts
• Streamline Processing • Procurement Cards• eProcurement Approvals
• Extend Procurement Automation to Suppliers• eSupplier Connection and Evaluated Receipt Settlement
• Greater Business Insight / Analytics • SRM Dashboard
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Source-to-PayBest Practices Benefits
• Simplification• Eliminate paper• Reduce manual entry and errors
• Standardization• Validation of master and transaction
data• Automation
• Matching, payment and dispute resolution
• Manage and control enterprise spend• Consolidation
• Shared services• Supplier collaboration
• Strategic alignment of finance activities with overall corporate goals
• Gain visibility and control over spending
• Focus on strategic activities• Improve internal policy
compliance• Better visibility into the entire
process• Better communication across
parties to optimize decisions and strategies
• Leverage supplier base
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