sc112 umoja logistics overview cbt ppt v17 ttt

Copyright © United Nations

Umoja Logistics Overview (Inbound Goods Process): PK & SPM – Version 17 Last Modified: 01-August-13

SC112 – Umoja Logistics Overview (Inbound Goods Process):

PK & SPM

1

Copyright © United Nations Copyright © United Nations

Agenda

2

Course Introduction

Module 1: Umoja Logistics (Inbound Goods Process)

Course Summary

Course Assessment

Course Survey

Copyright © United Nations


Course Overview

3

The purpose of the Umoja Logistics Overview course is to introduce the Inbound Goods process for DFS-supported missions.

This is an interim process applicable to Peacekeeping and Special Political Missions during the period of coexistence of the Umoja and Galileo systems, for activities performed when receiving goods from commodity vendors.

Prerequisite Review

You should have completed the following prerequisite courses:

• Umoja Overview

• Umoja Master Data & Coding Block Overview

Course Duration: 1 hour and 30 minutes


Course Objectives

After completing this course, you will be able to:

• Describe the high-level Inbound Goods process in Umoja

• Identify the key roles and responsibilities in the Inbound Goods process

• Describe the ways in which the Umoja implementation changes the Inbound Goods process

• Explain the difference between a virtual and a physical Goods Receipt

4


Agenda

5 Copyright © United Nations

Course Introduction


Course Summary

Course Assessment

Course Survey


Key Terminology

6

Key Term Description

International Public Sector Accounting Standards (IPSAS)

A set of accounting standards issued by the IPSAS board for use by public sector entities around the world in the preparation of financial statements

International Commercial terms (Incoterms)

A series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. These three-letter trade terms are related to common contractual sales practices. Incoterms help in clearly communicating the tasks, costs and risks associated with the transportation and delivery of goods

Purchase Order (PO) A buyer-generated document that authorizes a purchase transaction

Invoice A vendor-generated document that indicates the products, quantities and agreed prices for products delivered by the vendor


Key Terminology

7


Goods Receipt A document generated to acknowledge receipt of goods, against an inbound delivery, conducted at the point of “first receipt” or transfer of ownership

Low Value Acquisition

A Purchase Order (PO) used for requirements that are up to $4000 USD issued without the direct involvement of Procurement. This replaces the Short PO process

Three-Way Matching

The comparison of quantities, price per unit, terms etc. appearing on the vendor’s invoice with the information on the PO and the Goods Receipt. This is done through the Logistics Invoice Verification (LIV) process

Inbound Delivery A document containing key delivery data required for triggering and monitoring the inbound movement of goods to the mission area. This is similar to an Advanced Shipping Notice (ASN)

Movement Type A three-character field in the Umoja ECC system to describe the type of material movement that needs to be performed. It is used for all types of goods movement in Umoja such as receipts and reversals


Key Terminology

8


Virtual Goods Receipt

A Goods Receipt posted in Umoja when the terms of a contract specify that the delivery of goods by a commodity vendor to UN occur at a named place of delivery other than the final destination

Physical Goods Receipt

A Goods Receipt posted in Umoja when the terms of a contract specify that the delivery of goods by a vendor to UN occur at the intended mission destination

Material Master

A Master Data record that contains information about all products procured, stored and shipped by UN. For example, Product ID, Product Category, Material Management and other physical or financial characteristics


Roles & Responsibilities

The following Umoja Enterprise roles are involved in the Umoja Logistics process:

9

Inbound Coordinator

• Updates information about inbound movement of goods to the mission based on information provided by the commodity vendors and freight providers

• Manages the information flow to indicate the transfer of ownership

• Enables downstream operations to be optimized through provision of shipment/movement information

• Cannot execute virtual or physical Goods Receipts transactions in Umoja

Note: Role definitions have been modified for this interim process.




10

Virtual Receiving User

• Receives goods against commercial procurement during the Virtual Goods Receipt process

• Indicates UN’s acceptance of goods during transfer of ownership, in accordance with the Incoterm





11

Receiving User

• Receives goods against commercial procurement during the Physical Goods Receipt process

• Indicates UN’s acceptance of goods during transfer of ownership, in accordance with the Incoterm



The Umoja Logistics Overview course introduces the Inbound Goods process for DFS-supported missions that is being implemented during the period of coexistence of the Umoja and Galileo systems, performed when receiving goods from commodity vendors.

• Inherent in this process is the tracking of inbound goods movement and, upon receipt, basic verification to affirm that goods being received conform to the Purchase Order (PO)/contract

• Goods received from internal transfers, such as inter/intra-mission transfers and Strategic Deployment Stock transfers, are received and managed through the current business process in Galileo

• Receipt of services is a different process and is introduced in the Service Receipt Process course

Introduction to Umoja Logistics: Inbound Goods Process

12

Inbound Processing

Umoja Goods Receipt

Galileo Goods Receipt and

Inventory Management*

Note: *Galileo Goods Receipt and Inventory Management is not performed in Umoja.


Umoja Logistics Benefits

Material Master is shared across Procurement and Logistics through one global Material Master Record, ensuring consistent and accurate data. The material procured is similar to the one received and managed in the inventory.

Goods Receipt is conducted in the same system where Procurement and Financial activities take place. This results in reduction of discrepancies and timely execution of payments.

Standardization of the Inbound process across the Secretariat, inline with the industry best practices. Enhanced visibility on expected deliveries, enabling better planning and reduced needs for additional communications such as phone calls and emails.

IPSAS compliance regarding transfer of ownership (example: virtual receipt of goods that are freight forwarded).

13

The benefits of Umoja Logistics are:


Current State with Legacy Systems

With the implementation of Umoja, several legacy systems are to be replaced as Umoja rolls out to locations. Within Supply Chain/Procurement/Logistics, the diagram below represents the current state.

14

Mercury

Sun

IMIS HQ ProcurePlus

CATS (Contract

Administration Tracking System)

Galileo Assets/Inventory

Automated Interfaces

Manual Data Updates/Uploads

Systems Will Continue to Exist

Systems to be Replaced


UNGM


Future State Until Decommission of Galileo

15

Within Supply Chain/Procurement/Logistics, here is how the Umoja system will interact with other systems (before the decommission of Galileo).

UMOJA

(Replaces SUN, Mercury, ProcurePlus and IMIS for

payment)

UNGM


Manual Data Updates/Uploads

Newly Linked System

Umoja System Automated Interfaces

CATS (Contract

Administration Tracking System)

Galileo Assets/Inventory


Coexistence of Umoja and Galileo

The Umoja system will ultimately replace the Galileo system. However, due to the provisional retention of Galileo, the two systems will coexist.

In effect, all goods from vendors are received in a two-step process.

The information being transferred to Galileo depends on the attributes of the goods as defined by the Material Master in Umoja. For example, items that need to be serialized are flagged from Umoja and categorized as Non-Expendables in Galileo.

16

Automated one-way data transfer passes details of the Goods

Receipt, including PO information

Umoja System

Goods are first received in the Umoja ECC and treated as “consumed” (not held for inventory), for accounting and invoice payment purposes

Then, the Receiving and Inventory Management process continues as per the current business process

Galileo System


Coexistence of Umoja ECC and Galileo

Galileo remains as a financial reporting and inventory management tool.

Umoja provides a complete equipment and inventory management solution, which will be implemented in further rollouts of the Umoja functionality for Peacekeeping. It will provide additional functionality in the receiving process, including:

• Serial number creation

• Barcode printing

• Batch management/creation

• Quality inspection

However, while Galileo is retained, these functions are not implemented for Peacekeeping locations.

17


Umoja ECC Output into Galileo

When goods are first received in Umoja ECC, relevant material and procurement data flows into Galileo to pre-populate fields allowing for a faster receiving process in Galileo.

18

Umoja ECC Galileo


What’s Changing?

19

With the implementation of Umoja, several business processes are changing:

• System Integration

• Financial Implications

• Inbound Delivery Process

• Virtual vs. Physical Goods Receipt

Note: These processes are governed by IPSAS/OPPBA guidelines/procedures and documented in publications, such as the Procurement Manual, DFS Property Management Manual and other policies issued by UN.


What’s Changing?

20

• Umoja links Procurement, Logistics and Finance functions. These functions share the Material Master Data through one global material record

• Users have access to the same information through one integrated system

• PO’s, Goods Receipts and Invoices share the same information, eliminating data re-entry

• The Umoja/Galileo interface will pre-populate relevant PO details and assist in completing the downstream processes in Galileo

• Goods acquisitions through the Low Value Acquisition (LVA) process need to be "received" by a Receiving User in Umoja (i.e. R&I) in order to pay the invoice

System Integration

20

Procurement

Logistics

Finance


The Material Master Data is a Master Data record that contains information about all products procured, stored and shipped by UN. It determines how the material will be managed from the requisitioning to downstream processes.

Key components of Material Master Data include:

What’s Changing? Material Master

21

Material Master

Data Objects

Unique ID of a product or service

Type of product or service Matches the equivalent UNSPSC

classification

Characteristics to enable Material Management

Other physical or financial characteristics

Material Management Characteristics

Product Category

Product ID


What’s Changing?

22

• Umoja ECC’s three-way matching functionality enables automated cross-check of PO, Goods Receipt and Invoice:

– If the documents cannot be matched, the system automatically blocks the payment

– If the documents do match, payments are cleared for processing, according to payment terms

• If physical discrepancies (example: damage) are found during Goods Receipt, a “blocked” status can be placed on the goods, resulting in no financial posting

Financial Implications

Invoice

Goods Receipt

Purchase Order

Umoja ECC

Umoja ECC performs three-way matching


Umoja ECC’s three-way match functionalities allows the comparison of quantities, price per unit, terms etc. appearing on the vendor’s invoice, with the information on the PO and Goods Receipt.

What’s Changing? – Three-way Match

23

Purchase Order Goods Receipt Invoice

Item 1 Material: -------- Quantity: -------- Item 2 Material: -------- Quantity: -------- Contract terms




What’s Changing? – Inbound Delivery

24

• Umoja introduces the concept of inbound delivery, which is a system-generated document used to update delivery details (similar to an Advanced Shipping Notice provided by freight forwarders or vendors)

• The Inbound Delivery process provides visibility of the shipment status to all stakeholders (i.e. Procurement, R&I and Requisitioner amongst others). It is created against a PO and updated by the Inbound Coordinator with shipment information and documentation (e.g. Bill of Lading), as they become available

• Vendor shipment information is now accessible by the receiving mission within the same procurement system. The update of inbound deliveries will provide delivery dates and corresponding shipment information and documentation to receivers

• The Inbound Coordinator is responsible for all processes related to the inbound delivery

Inbound Delivery Process

Inbound Processing

Umoja Goods Receipt

Galileo Goods Receipt


What’s Changing?

25

• Goods Receipt is conducted at the point of “first receipt” or transfer of ownership, in accordance with the contractual Incoterms. This is the criteria used to distinguish between a virtual goods receipt and a physical goods receipt

• Virtual goods receipts do not have an inspection step before the payment is cleared for processing

• Umoja ECC uses “movement types” to execute the taken receiving actions

Virtual and Physical Goods Receipt

Inbound Processing

Umoja Goods Receipt

Galileo Goods Receipt


How is Receiving Done in Umoja ECC?

Now that we’ve seen the changes Umoja ECC is bringing, the following section contains information on how the Goods Receipt process is performed in Umoja ECC.

26


Virtual and Physical Receipt for Common UN Incoterms

27

The transfer of ownership that occurs between the seller and buyer is dictated by the Incoterm. Thus, a virtual goods receipt can occur at any location prior to the final receiving UN location. Incoterms 2010 commonly used by UN are depicted:

UN EXW

FCA Seller UN

Seller UN FOB

Seller

DAP Seller

DDP

Seller UN DAT

Point of Origin UN Location Onboard Vessel Port Port

Virtual Receipt

Physical Receipt


What is a Virtual Goods Receipt?

28

IPSAS requires goods to be received at the point of transfer in ownership from the commodity vendor to UN, as dictated by the appropriate Incoterms. This can occur before goods are physically received by the mission, for example when they are placed at the disposal of a UN-designated freight forwarder. In Umoja, this is considered a virtual goods receipt.

Within the virtual goods receipt process:

• Inbound deliveries are updated with relevant information provided by commodity vendor to confirm delivery of goods

• The Virtual Receiving User then receives the goods against the inbound delivery

• Umoja ECC will automatically perform a three-way match and clear the payment for processing


Vendor Delivers at Origin or Other Named Place (e.g. Port of Delivery) Vendor Delivers at Destination


Incoterms Applicable for Virtual Goods Receipt

29

Incoterms:

• EXW – Ex Works

• FAS – Free Alongside Ship

• FCA – Free Carrier

• FOB – Free on Board

• DAT – Delivered at Terminal

• CFR – Cost and Freight

• CIF – Cost, Insurance and Freight

• CIP – Carriage and Insurance Paid To

• CPT – Carriage Paid To




What is a Physical Goods Receipt?

30

Physical goods receipt refers to the process where commodity vendors deliver directly to the mission location, as dictated by the appropriate Incoterms.

Within the physical goods receipt process:

• The Receiving User receives the goods against the inbound delivery in Umoja

• For a standard goods receipt, Umoja ECC will automatically perform a three-way match and clear the payment for processing

• If discrepancies are found, goods can be moved to a “blocked” status and the invoice for payment cannot be paid until resolved

• Requisitioners are notified by a system-generated email upon goods receipt (under deliveries and “blocked” goods are indicated)




Incoterms Applicable for Physical Goods Receipt

31

Incoterms:

• DAP – Delivered at Place

• DDP – Delivered Duty Paid

• DDU (Removed from 2010 Incoterms)




Umoja ECC uses movement types to execute the receiving actions taken. When a movement type is used, goods are received to a certain stock type.

A stock type defines the system state that classifies goods. Stock types used in Umoja:

Umoja ECC Stock Type

Material available for use upon receipt:

• This stock type allows full financial posting and invoice processing

Unrestricted Stock

Material not available for use upon receipt:

• Should only be used in exceptional cases

• Used when goods are clearly damaged or have different specifications from the PO

• Upon receipt of such goods, UN will not accept ownership until resolution is reached with vendor

• This stock type blocks full financial posting and invoice processing

Blocked Stock

Note: Since inventory or “stock” is not managed in Umoja in this interim process, the purpose of a stock type is to determine financial posting and invoice processing.

32


Movement Types for Virtual Goods Receipt

33

• Goods receipt performed in Umoja ECC prior to the arrival of the goods in the receiving location

• Goods are always received to Unrestricted Stock

• Inspection is not conducted in Umoja ECC

• Full financial posting

• Invoice processing

• Three-way match

Virtual Goods Receipt to Unrestricted Stock

Description

Financial Implication

The following movement types are used for virtual goods receipt:


Movement Types for Physical Goods Receipt

34

• Goods receipt performed when goods are delivered and first received at the intended mission destination (standard goods receipt)



• Three-way match

Goods Receipt to Unrestricted Stock

Description


The following movement types are used for physical goods receipt:



35

• Used in exceptional cases, when goods are clearly damaged or have different specifications from the PO, thereby prohibiting UN from taking ownership of the goods

• No posting in Galileo

• No financial posting

• No invoice processing

Goods Receipt to Blocked Stock

Description





36

• Discrepancies with goods are resolved offline, released to Unrestricted Stock



• Three-way match

Release Blocked Stock

Description





37

• Goods receipt due to error or other valid reasons (not including return to vendor)

• Varies depending on receipt movement type

Reversal of Goods Receipt

Description





38

• Goods need to be returned to vendor

• Varies depending on receipt movement type

Description



Return to Vendor


Putting it Together: Goods Procurement

The steps for performing a virtual or physical goods receipt are summarized below:

39

Galileo Interface Continue Receiving Process in Galileo

Virtual Goods Receipt Physical Goods Receipt

Inbound Coordinator Inbound Delivery Update

Virtual Receiving User Virtual Receipt

Vendor delivers at origin or other named place

Inbound Coordinator Check Delivery Documents

Vendor provides delivery update


Virtual Receiving User Check Delivery Documents

Receiving User Check for Discrepancy

Receiving User Physical Receipt


Vendor provides delivery update

Vendor delivers at destination

Receiving User Check Delivery Documents


Specifically for the Receiving User, the following decision needs to be made when the goods arrive at the receiving mission location.

Putting it Together: Receiving User Decision

40

Have the goods already been received in Umoja ECC?

This means a virtual goods receipt was already done

I only need to receive the goods in Galileo

This means I need to do a physical goods receipt

I need to receive the goods in Umoja ECC, using the correct movement type

Then, I need to receive the goods in Galileo

Yes

No


Reports

There are several key reports used across the Umoja Logistics process. Some are introduced in this course, while others are detailed in the Level 3 course.

41

The user generates a daily report that displays all inbound deliveries at the mission/location. This provides delivery dates and corresponding shipment information/documentation.

Inbound Delivery Report

The user can generate a list of material documents (Goods Receipts) that have been posted by material or multiple materials. From the output list, the user can search for and display a particular material document.

Material Document Report

The user can generate a list of PO’s by PO number for a mission/location. This allows the user to find the status/details of a particular PO. Other variations of this report allow views (for example, by vendor or by material).

Purchase Order Report


Learning Checkpoint 1

When goods are placed at the disposal of a UN-designated freight forwarder, which tasks are performed by the Virtual Receiving User in Umoja?

Select the correct option.

A. Virtually receive goods to indicate transfer of ownership to UN

B. Barcode and update received batches, as applicable

C. Perform a quality inspection of materials

D. Create inbound delivery

42



When goods are placed at the disposal of a UN-designated freight forwarder, which tasks are performed by the Virtual Receiving User in Umoja?


A. Virtually receive goods to indicate transfer of ownership to UN

B. Barcode and update received batches, as applicable

C. Perform a quality inspection of materials

D. Create inbound delivery

43

Option A is correct. The Virtual Receiving User virtually receives the goods to indicate transfer of ownership to UN.



Which documents are cross checked during the three-way match?


A. Inbound Delivery, Sales Order and Goods Receipt

B. Inbound Delivery, Purchase Order and Invoice

C. Purchase Order, Sales Order and Goods Receipt

D. Purchase Order, Invoice and Goods Receipt

44



Which documents are cross checked during the three-way match?


A. Inbound Delivery, Sales Order and Goods Receipt

B. Inbound Delivery, Purchase Order and Invoice

C. Purchase Order, Sales Order and Goods Receipt

D. Purchase Order, Invoice and Goods Receipt

45

Option D is correct. Three-way match cross checks the PO, Invoice and Goods Receipt.


Agenda


Course Introduction


Course Summary

Course Assessment

Course Survey


Course Summary

47

The key points covered in this course are listed below:

• The Inbounds Goods process involves the tracking of inbound goods movement and, upon receipt, basic verification to affirm that goods being received conform to the PO/contract

• The Umoja system will ultimately replace the Galileo system. However, due to the provisional retention of Galileo, the two systems will coexist

• Umoja ECC’s three-way match functionality allows the comparison of quantities, price per unit, terms etc. appearing on the vendor’s invoice, with the information on the PO and Goods Receipt

• Umoja introduces the concept of inbound delivery, which is a system-generated document used to update delivery details

• Inbound delivery process provides visibility of the shipment status to all stakeholders


Agenda


Course Introduction


Course Summary

Course Assessment

Course Survey


Course Assessment

Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment.

To receive credit for completing this course, you must pass this assessment with a minimum score of 90%.

To complete the assessment you must return to the Learning Management System:

1. Log into Inspira

2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning

3. Search for the name of the course under the My Learning Activities section

4. Click on the Start link of the course assessment

5. Click the Submit button once you have completed the assessment

49


Agenda


Course Introduction


Course Summary

Course Assessment

Course Survey


Course Survey

51

Your feedback is important to the continuous improvement of our training program.

Please complete the evaluation for this course using the following steps:

1. Log into Inspira

2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning

3. Search for the name of the course under the My Learning Activities section

4. Click on the Start link of the course survey

5. Click the Submit button once you have completed the course survey


Congratulations! You have successfully completed the

Umoja Logistics Overview (Inbound Goods Process): PK & SPM course.

52

sc112 umoja logistics overview cbt ppt v17 ttt

Documents

receipt of goods

physical goods receipt

key term description

umoja implementation

interim process applicable

key delivery data

key roles

vendorgenerated document