Purchasing Releases 8.9 and 9.0

PurchasingReleases 8.9 and 9.0

Alexandra Haytcher

Michael Webb

SRM Product Strategy

Agenda

• Purchasing 8.9 Enhancements

• Purchasing 9.0 Enhancements

Purchasing 8.9 Enhancements


• Vendor Rebates – Rebate Agreements and Accruals

• Vendor Rebates – Claim Management Workbench

• Vendor Rebates – Rebate Analysis Workbench

• POA Enhancements

• SRM Dashboard

• Procurement Card Enhancements

• Future Dated Conversion Rate Changes

• Vendor Master Enhancements

• Order Multiples

• Receiving Enhancements






• SRM Dashboard




• Order Multiples


Vendor Rebates

Allow customers to capture contractual rebate agreements with their suppliers, accrue rebate amounts and receive rebate payments

• Rebates are negotiated as contractual agreements

• Agreements specify the rebate factors and payment frequency

• Rebates are accrued on goods receipt or at the time of vouchering

• Periodically a rebate claim is sent to the supplier

• Suppliers can pay by check or through a debit memo

Vendor Rebates

IncomingPayment

PO Receipt

RebateAgreement

PurchaseOrder

PO Contract

Voucher

AccruedRebate

Rebate Claims

RTV

AP DebitMemo

AR PendingItem

AR PaymentNotification

APNotification

ClaimsManagementWorkbench

RebateManager

Notification

SettlementManager

Notification

Approval

FormalClaim

RebateAllocation

RebateAnalysis

Workbench

Claims & Payment MatchingRebate

AnalysisReport

RebateAnalysis

Extraction

BackdateRebate

Agreement

Vendor Rebates – Rebate Agreement

Vendor Rebates – Rebate Agreement

Vendor Rebates – Rebate Rule Types

• Rebate Agreements supports the following Rebate Rule Types

– Standard Rebate

– Retrospective Rebate

– Flat Rebate

– Growth Bonus

– Marketing Allowance

Vendor Rebates – Rebate Rules

Vendor Rebates

• Rebate information defaults onto PO Line

– On-line entry

– PO Sourcing

Vendor Rebates

• Criteria used for defaulting and validating the Rebate Agreement association with PO

– Rebate must be Approved

– PO date must fall within Rebate Agreement Begin and Expire dates

– Rebate vendor, and optionally vendor location, matched against PO vendor

– Rebate vendor matched against vendor specified on GPO Manufacturer page (for GPO Contracts)

Vendor Rebates

• Criteria used for defaulting and validating the Rebate Agreement association with PO, continued– Item, Category, and Item Exceptions; or Open

Item Rebate Agreement

– Automatically Include PO Adhoc Items

– PO business unit specified on Rebate Agreement (for non-corporate Rebates)

– Direct Ship Option (Include Direct Shipments, Exclude Direct Shipments, Direct Shipments Only)

Vendor Rebates

• Rebate Accrual process - Calculates accrued rebates for PO Receipts, Vouchers and RTVs against POs associated with the Rebate Agreement

– Accruing against Receipts and RTVs is optional

• Backdate Rebate Agreements

– Associate or Disassociate Rebate Agreement with purchase order

– Rebate accruals will be recalculated accordingly






• SRM Dashboard




• Order Multiples


Vendor Rebates – Claims Generation

• Generate Claims based on Accrued Rebate Transactions

• Includes previously deferred claims

• Claims generation date determined by Settlement Frequency and the calculated Next Claims Generation Date defined on the Rebate Agreement

• Automatically runs Rebate Accrual process before generating claim to calculate most accurate claim amount

• Validates Rebate Agreement’s Maximum Rebate Amount

Claims Management Workbench

• Manage all Claim activities

– View claims based on unique Workbench ID

– Approve, Defer, Cancel, and Unapprove Claims

– Dispatch claims to inform suppliers of expected payment

– Informs Payables/Receivables of pending supplier payment using Claim Settlement Process

– Matches supplier payments with Rebate Claims using the Reconciliation process

– For overdue payments, submit the deduction process to reverse Pending AR item, and send Debit Memo to Payables

Claims Management Workbench






• SRM Dashboard




• Order Multiples


Vendor Rebates – Rebate Allocation

• Record accrued rebate allocations allocated to sales organizations

Rebate Analysis Workbench

• Analyze and inquire on Rebate Agreements

• View or extract all accrued rebate details

• View or print PO not Received inquiry

• Determine additional purchases to achieve next rebate threshold

• Evaluate rebate transactions by Month, Quarter, or Year

Rebate Analysis Workbench

• Analyze Rebates and view details






• SRM Dashboard




• Order Multiples


POA Enhancements Summary

• Improve buyer visibility of current supplier commitments

– Optionally require POAs from vendors

– POA status tracking on PO header

• Streamline buyer acceptance and identify exceptions that need to be reviewed

– Auto-approval of POAs within tolerance

• Allow for buyer side manual POA entry

POA Process Flow

POA Settings at Purchasing Options Level

• Accessible from Purchasing Process Options page

POA Settings at Purchasing Options Level

• Specify whether POA is required for vendors. If selected …– Helps suppliers filter POs within eSupplier Connection

– POA must be received by the specified number of days after PO dispatch or before the due date, whichever is first

– Otherwise, optionally buyer receives worklist notification

– Specify whether POA is required for Buyer initiated change orders

• Specify tolerances for automatically approving POA changes. Specify acceptable …– Days before, and after, schedule due date

– Percent under, and over, schedule quantity

– Percent below, and above, PO unit price

POA Settings at Vendor Location Level• Indicate whether vendor is required to sent POA

– Options include POA Required, POA Not Required, Default from PO BU Settings

• Send alert to buyer if POA is not received

• Optionally default POA Required setting and tolerances from Business Unit

POA Enhancements on PO


• Acknowledgement status added to PO Header

– For Vendors that require POAs

• Hyperlink to Acknowledgment pages

– Review, approve supplier POAs

– Create POA on behalf of supplier

• Buyer can manually Acknowledge POA from “Awaiting POA” to “Acknowledged”

– Automatically creates POA edit, history records

POA Enhancements – Acknowledgment Statuses

• Blank – Hidden, PO does not require POA

• Awaiting PO Dispatch – PO is not yet dispatched or re-dispatched

• Awaiting POA – POA is required and PO is awaiting acknowledgment from Supplier

• Responded, Awaits Review – Acknowledgment received with changes not reviewed by Buyer

• Approved (PO Change Pending) – Buyer has approved supplier’s POA, but has not processed through PO Change

• Acknowledged and Acknowledged with Changes – Buyer has accepted supplier’s POA


• Buyer can override POA Required option on PO Header Details page

POA Worklist Notifications

• POs for which POA is required - POA has not been received within specified number of days from dispatch or due date






• SRM Dashboard




• Order Multiples


SRM Dashboard

• Collection of pagelets and metrics presenting aggregated view of source-to-settle business process for Buyers (and Managers in Release 9.0)

• Provides the ability to view Purchasing and eProcurement-related information in one centralized location

• Users are able to view transactions

– To which they are assigned as Buyer

– For Business Units in Buyer’s assigned Reporting Entity (group of Business Units)

– Based on Buyer’s assigned Calendar

SRM Dashboard

SRM Dashboard

SRM Dashboard – Activity Monitor

• Activity Monitor Worklist Items

– POs for which Purchase Order Acknowledgment is required, but the supplier has not yet responded within the specified number of days

– Contract Expiration Notification

– Other Worklist Notifications

SRM Dashboard Metrics

• Total Spend by Buyer and BU

• Contract Spend by Buyer and BU

• Graphical Display based on time period buckets defined by reporting entity’s calendar

SRM Dashboard Pagelets

• Requisitions to be Sourced– Hyperlink takes user to Requisition Details

• Overdue Purchase Order Schedules– POs containing schedules that have not been fully received

– Hyperlink takes user to PO transaction

• Advance Shipment Notices– Hyperlink takes user to ASN history

• Purchase Orders without Acknowledgements– PO requires POA

– POA status “Awaiting Acknowledgment” and “Responded, Awaiting Review”

• Recently Dispatched Purchase Orders– Hyperlink takes user to PO transaction






• SRM Dashboard




• Order Multiples


Procurement Card Enhancements

• Reduce the volume of invoices and improve PCard transaction reconciliation

– Ability to Select a PCard as a Payment method on the Requisition

– Have the PCard information flow through the PO sourcing process

– Ability to Select a PCard as a Payment method on the Purchase Order

– Multiple PCard number dispatch options

– Vendor Ghost cards

– Auto-Reconciliation of transaction for PCard Purchase Orders

New Procurement Card Access Rights

• Three new Access Rights

– Use Procurement Card on Requisition – Determines procurement card visibility and card prompt values on requisition

– Use Procurement Card on Purchase Order – Determines procurement card visibility and card prompt values on purchase order

– Allow Override of Vendor Ghost Card – Allows buyer to select a different card on PO when Ghost Card is defaulted from vendor

Procurement Card

• Procurement card information specified at vendor location level

Ghost Card

• Ghost Card – Procurement Card that is associated with a specific Vendor or a specific Item, item category or commodity code. All purchases from the Vendor or for the item/category/code are charged to the associated PCard.

• Ghost Card support in 8.9 – The only option supported is Procurement Card associated with a Vendor Location

• Vendor Card – Term may be used interchangeably with Ghost Card

PCard Information on Vendor

• Accepts Procurement Card as Payment Method – If selected, Procurement Card can be used as a payment method on purchases using this vendor

• PCard Dispatch Option - PCard Dispatch Option controls how the PCard number is to be communicated to the supplier– Display “Charge to Card on File”

– Display “Contact Buyer”

– Display “Contact Cardholder”

– Default from Business Unit option

– Display the masked card number

– Do not include reference

PCard Information on Vendor

• Types of Procurement Cards - Specify the only card types that are accepted by this vendor

• Vendor Card – Default “Ghost” card associated with vendor

• Use Vendor Card as default Payment method on purchase order – Vendor Card defined above defaults onto purchase orders

• Allow Override Vendor Card – Buyers may override the vendor card number on the PO

Requester and Buyer’s Procurement Card Set Up

Requester and Buyer’s Procurement Card Set Up

• Card Number – Card assigned to requester or buyer– Available cards on Requester setup – limited to card numbers

that the Requester has access to via Role security “Use Procurement Card on Req” on Access rights to roles (and the related assignment of roles to PCards)

• Use Procurement Card as default payment method on Requisitions (Requester Setup) – If selected, requester’s card is automatically assigned to requester’s requisitions

• Use Procurement Card as default payment method on Purchase Orders (Buyer Setup) – If selected, buyer’s card is automatically assigned to buyer’s purchase orders, if a ghost card does not exist

Procurement Card on Requisition

Procurement Card on Requisition

• If requester is set up as a card holder, and Use PCard as payment method is selected at Requester Set Up, Requester’s card defaults onto requisition

• Requester has ability to select a different card for which he has authority to use

– Available cards on Requisition – limited to card numbers that the Requester has access to via Role security “Use Procurement Card on Req” on Access rights (for the Requester’s user) to roles (and the related assignment of roles to PCards)

Procurement Cards and PO Sourcing• Hierarchy of PCard defaulting onto PO…

– Vendor Ghost Card

– PCard on Requisition

– Buyer’s PCard

• PO Calc will override card number with vendor’s ghost card– Unless PO is manually sourced with Define PO Option

selected

• PCard Number usage in PO consolidation– Purchase orders will have lines that will be paid via PCard or

lines that will be invoiced, not both

– A purchase order can have only one procurement card as a payment method. Therefore, procurement card is considered as consolidation criteria

Procurement Card Information on PO

• Procurement card information accessible from hyperlink on PO header

• Ghost card information defaults onto purchase order. Otherwise, requester’s or buyer’s default card number

• Option to override, or not use Procurement Card

Procurement Card Information on PO

• Buyer has ability to override Vendor Ghost Card to a card which they have role access “Use on PO” if the role Override Ghost Card is ‘Y’ and Vendor Profile allows for override

• Available cards on Purchase Order – limited to card numbers that the Buyer has access to via Role security “Use Procurement Card on PO” on Access rights for the Buyer to roles (and the related assignment of roles to PCards)

• PO Matching rules set to No Match when Procurement Card is used as payment method on PO

Reconciling PCard Statements (Associating POs with PCard Transactions)

• PCard information communicated with vendor

• Vendor passes PO information onto card issuing bank

• Bank passes PO information to customer in PCard bank statement

• Statement Load loading process attempts to use PO ID, along with transaction date and dollar amount, to try and match transaction with PO information

Closing POs Associated with PCards

• Procurement Card search criteria added to Reconciliation Workbench– Valid values based on selected Buyer

• Procurement Card POs will close based on existing criteria (no changes made to Reconciliation Process)– PO will not be Matched

– All lines and schedules have been associated with PCard transaction

– Associated transaction has been approved and paid within tolerance

– All lines have been received/inspected within receiving tolerance

– Close days have passed

Procurement Card and Prepayment Voucher

• In prior releases, prepaid vouchers needed to be created manually.

• In 8.9, process automatically stages prepaid voucher line line in Voucher Staging when loading bank statement






• SRM Dashboard




• Order Multiples


Future Dated Conversion Rate Changes

• Accommodates changes to product packaging from suppliers

– Record future dated conversion rate and packaging changes as you hear about them

– View history of conversion rate changes

– New conversion rates become effective on Effective Date



• Store future dated conversion and packaging changes on the Effective Dated UOM page– Manually updated

– Updated through Item Loader, CUP Loader, and GPO Vendor Price Load processes

• Use the “Update PO” feature to search for and apply new conversion rates to existing purchase orders– Auto-update the converted standard quantity on selected

Purchase Orders

– Users can update the prices and ordering quantities for impacted POs identified in the search






• SRM Dashboard




• Order Multiples


Vendor Enhancements

• User Definable fields added to Vendor Master

• Contacts – Phone numbers retrieved and displayed from Address

• D&B Credit Flag

• Advanced Address Lookup Capability

• Ability to override Vendor Location at Item Vendor

User Definable Fields Added to Vendor Master

• Ten 30-character fields added to new ‘Custom’ tab within the Vendor component

• Fields are stored in their own table

• Usable for custom reports and queries

Vendor Contacts

• When user associates an address with a Contact, address’s phone numbers carry over

Stored and maintained as part of Contact

Vendor Master DUNS and D&B Numbers

• PeopleSoft distinguishes between DUNS and D&B Numbers– DUNS number has edit

– D&B does not

– Documentation recommends for to users to inactivate translate value not being used

• New Translate Value DUNS+4

• Added D&B Credit File Flag to Vendor and Vendor Location– Indicates whether D&B Credit File exists

Advanced Address Lookup Capability

Vendor Master Advanced Address Lookup Capability

• Advanced Address Lookup for Address Page

– Useful when needing to maintain a specific address from a long list of vendor addresses

– Accessed via Address Search hyperlink

– User selects one address, and user is returned to the Vendor Address page with focus on selected address

• Also available on Vendor Procurement Options and Vendor Payable Options pages

– Useful for selecting Address within specific locations

Item Specific Vendor Ordering Location Priority• Defaults from Vendor’s default Ordering Location

• Override the default ordering location at the vendor level

• Specified Vendor Ordering Location used …– During PO Sourcing

– Core and ePro requisition

– PO Stage Load

– Requisition Loader






• SRM Dashboard




• Order Multiples


Order Multiples

• Order Multiple defined at Item Vendor

• System checks for the order multiple during online PO entry

Order Multiples Set Up

• Specify whether to check at Item Vendor Price Location level

• Specify Order Multiple Quantity at Item Vendor UOM level






• SRM Dashboard




• Order Multiples


Receive by Distribution

• Prior Releases – Only able to allocate received distributions using FIFO (First In First Out) or Prorated the total quantity across all distributions

• Release 8.9 – Additional option for non-inventory items of allowing User to Specify how received quantities are allocated across distributions

Receive by Distribution

Ability to Override Price for non-PO Receipts

• Change Non-PO Receipts – Security option on User Preferences which controls whether user has authority to override price

• Also enables users to create non-PO receipts for order-by-description items

Receiving Required Enhancement

• Able to Identify purchase order lines or items where receiving is not allowed

• Receiving Required Checkbox changed to drop-down list box:– X (Do not Receive)

– Y (Receiving Required)

– N (Receiving is Optional)

• Purchase Order lines for which receiving is not allowed will not be available for selection on the Receipt


• Re-open and Adjustment of Closed Purchase Orders and Requisitions

• Amount Only Requisitions

• More SRM Dashboard Enhancements

• Purging and Archiving






Re-open Closed POs and Requisitions

• Currently, can only re-open requisitions and purchase orders from the last batch of the Close Reconciliation process

• Release 9.0, re-open ANY previously closed requisition or purchase order– Specific transaction or based on selection criteria

• Reverts to last transaction status prior to Closing

• Useful when transaction inadvertently closed to early

Re-open Closed POs and Requisitions

Specify Transactions to Re-Open






Amount Only Functionality Today

• Currently, amount only functionality exists for purchase orders and contracts

• Allows multiple receipts against an amount based purchase order

• Issue: Purchase orders created through eProcurement and Requisitions must be intervened before being dispatched and manually updated by Buyer

• Issue: Customers using amount only purchase orders for services and progressive payments must manually override Receipt Required option on PO

Amount Only Requisitions

• One of SRM PUG top priorities

• Release 9.0, Amount Only option added to eProcurement and Purchasing Requisition Line

– Flows through to purchase order

– Consolidation and Split Sourcing prohibited

• Business Unit option to automatically create amount only purchase order lines with option Do Not Receive






SRM Dashboard Enhancements

• Expanded KPIs for buyers and managers– Buyer’s perspective includes metrics for which he/she

is assigned buyer

– Manager’s perspective includes aggregate of metrics of associated buyers

• Drill down capability– Summary metrics at business unit level

– Filter and view details on spend

• Supplier performance analytics pagelet

SRM Dashboard Bar Graphs

• Mouse over bar displays total amount, total # of Schedules or POs

• Drill down to spend by business unit (Buyer’s view), spend by Buyer (Manager’s view)

• Drill into POs based on selection criteria

• View contract spend and non contract spend

Total Schedule Spend by Period

PO Spend by PO Date

Contract Spend by Period(and Non-Contract Spend)

Total Schedule Spend by Period

Amount 4940.13 for period 5/06, Total schedule lines: 4

Mouse over bar indicates total dollar amount and total number of schedules for period

Schedule Spend by Period

Total Spend by BU

Filter and View Schedules

Drill into PO

SRM Dashboard Pagelets

• Spend by Category

– Drill down displays category spend by supplier

– Supplier hyperlink drills down to all POs for selected vendor and category

• Spend by Vendor

– Drill down displays all categories of spend for vendor

– Category hyperlink drills down to all POs for selected category and vendor

Spend by Category

Category Spend by Vendor

Supplier Analytics

• Existing Supplier Analytics graphs added to dashboard

– On time performance

– PO/Receipt Quantity Performance

– Quality Performance

– Quantity Performance

On-Time Performance






Purging and Archiving

• Archiving solution “how to” guide for storing historical Purchasing information

• Comprehensive document details …– All Tables

– Order in which to archive

– Impact to other applications

Thank You

Documents

Purchasing Releases 8.9 and 9.0