Published on October 22, 2007
E-Procurement Rollout WorkshopPanamá, September 5-9, 2005: E-Procurement Rollout Workshop Panamá, September 5-9, 2005 Atlas Purchasing and Accounts Payable Overview Integration Points Vendors Requisitions Purchase Orders Contracts Receipts Matching Overview: Overview Purchasing (also known as Procurement) and Accounts Payable form the backbone of the procure-to-pay process in Atlas Purchasing Requisitions Purchase Orders Procurement Contracts (Recurring PO and Milestone) Accounts Payable Vouchers Procurement Contracts (AP-based) Voucher Payment (Pay Cycle) Purchasing and Payables Process Flow: Accounts Payable Purchasing Purchasing and Payables Process Flow Create Requisition Approve Requisition (UNFPA/UNOPS) Budget Check Requisition Create Purchase Order Create Recurring PO Voucher Contract Sourcing of Requisition Approve Purchase Order Dispatch Purchase Order Budget Check Purchase Order Change Purchase Order PO Release and Staging Create Receipt Enter Regular Voucher Approve Voucher (with non-PO lines) Budget Check Voucher Two-Way or Three-Way Matching Pay Cycle Electronic or Check-Based Payment Voucher Posting Payment Posting Distribution: Distribution Distribution is captured on all source documents and represents the ChartFields being charged for the transaction Combination Edits and Budget Checking is used to ensure all appropriate fields are entered Fund Code Detail Department (not B-department) Operating Unit (UNDP1 and UNFEM only) Project ID is entered for expenditure accounts (UNDP, UNFEM, and UNCDF only) Implementing Agent for expenditure accounts (UNDP) Donor for expenditure accounts (UNDP) Distribution is copied from one document to the next along with other document details Requisition to PO through sourcing PO to Voucher through copy Budget Checking also used to ensure Commitment Control is updated and budget is available Approvals in Atlas: Approvals in Atlas Three basic approval levels: Manager Level 1: Less than 5,000 USD Manager Level 2: 5,000 to 30000 USD Senior Manager: 30,000 to 100,000 USD Purchases of 100,000 USD or more Control framework requires ACP submission for these amounts System does not distinguish approvals of 100,000 USD or more from Senior Manager approvals Senior Manager approval of amounts indicates they have followed CAP and ACP processes as appropriate. Approval is based on first distribution on document only For this reason, person responsible for document should always include appropriate approving unit on first distribution. Approver expected to solicit approval of units referenced on the document. Approval (for UNDP) based on department Types of Approvals: Types of Approvals Requisition UNDP requisitions are automatically approved. UNFPA and UNOPS have standard approval for requisitions. Purchase Order Voucher Only required when voucher contains non-PO related lines Vouchers with all PO lines are not approved because approval of PO plus matching accommodates approval requirements Vendor Vendors approval differs from other types of approvals because it takes place only at business unit (country office) level. Office may have one or more vendor approvers. Procurement Lifecycle: Procurement Lifecycle The requisition is created. The purchase order is created and dispatched. The purchase order is received and the receipt is processed. The purchase order is vouchered and matched. The purchase order is reconciled through the Reconciliation Workbench and the status marked complete once close days are passed. The requisition is reconciled and the status is complete once close days are passed. Vendors: Vendors All payees are considered vendors. You create vendor profiles to store all the information you need to know about a vendor. It can be as simple as a vendor name and address or, more likely, a wealth of information about payment terms and methods as well as voucher processing defaults. A vendor location is not a physical address. It comprises information such as procurement options (including payment terms, currency information, shipping method, payment options, and so on). You cannot enter vouchers for a vendor until the vendor has been approved. Likewise, a vendor must be approved and open for ordering before you can enter purchase orders for the vendor. Contracts: Contracts Voucher Contracts Using voucher contracts, you can establish and schedule amounts for recurring payments such as rent and lease payments, utilities, and regular supply deliveries, and generate the resulting vouchers. As each voucher comes due according to the payment terms of the vendor and business unit, the voucher is approved and paid. You can adjust the amount of individual vouchers during the life of the contract. Retention is also supported for voucher contracts and their recurring payment releases. A retention amount or percentage can be applied to all voucher contract release, the first release only, or the last release only. A separate schedule is created on the voucher for the retained amount and placed on hold. Contracts: Contracts Milestones Voucher and order contracts support milestones, also known as progress payments. Milestones are generally based on a percentage of work done or an amount of items received. Using milestones enables you to break down a contract line into multiple schedules, and release the schedules when you reach a target date or percentage of job complete. Blanket Orders Order contracts functionality provides support for blanket orders by enabling you to associate a contract to a purchase order by assigning one purchase order to be used for the life of the contract. All transactions that reference this contract add lines or schedules to the assigned purchase order. Contracts: Contracts Recurring PO Vouchers Recurring purchase order vouchers enable you to encumber an entire contract amount for a voucher contract by associating the contract to a specific purchase order. As you generate voucher releases over time, the system liquidates the PO amount when you run budget checking against the vouchers. You can use one or many vouchers that are associated to the encumbered PO. You create the PO from the contracts page, then build it and run budget checking on the new PO. This creates an encumbrance for the amount of the contract/PO. You define release dates and generate staged voucher releases. You build the vouchers, run budget checking against them, and the system liquidates the associated PO for the voucher amount. Requisitions: Requisitions Requisitions are used by project managers and others to request procurement users to initiate the procurement process with one or more vendors. Person who creates a requisition is called the “requisitioner” and may be a project manager or other non-procurement user. Four primary levels to a Requisition Header Line Schedule Distribution Requisitions do not require a vendor. Requisition must be budget checked so that requisition amount is pre-encumbered in Commitment Control. Pre-encumbrance does not count against available budget for UNDP, so tolerance exceptions will not be triggered. UNFPA and UNOPS do count pre-encumbrance as part of available budget. Approval is not currently required for a UNDP requisition. (UNFPA and UNOPS require approval.) Purchase Orders: Purchase Orders Purchase Order is created by a buyer to procure goods from a specific vendor. Can either be sourced from a requisition or created with no associated requisition. Purchase orders must be approved Four primary levels to a PO Header Line Schedule Distribution Same levels and basic purpose as Requisition Purchase Orders cannot be dispatched until approved and budget checked. Approval is required before a PO will be budget checked. Vouchers cannot be copied from a PO unless the PO has been dispatched. Receipts: Receipts Receipts or Receivers are entered at the point goods or services are received at the office Receipts are required to be entered for all PO-based procurement except DSAs and Recurring PO Voucher Contracts A receipt can reference one or more lines/schedules on a PO. A receipt can be entered for less than the full quantity of the line Multiple receipts can be entered against the same line as long as more than the total quantity (or amount) is received Receipts or receipt lines can be cancelled as long as they have not been matched against vouchers or sent to Asset Management Payables Integration to Purchasing: Payables Integration to Purchasing Two primary integration points between PO and AP: PO and Receipt Copy Can copy POs or PO receipts and associated details from the source document to the voucher Details include line and distribution-level (charging) information The schedule-level of the PO or Receipt maps to the voucher line Matching Process Used to enforce internal controls and ensure a vendor is not overpaid or paid improperly Document integration is flexible Multiple vouchers can be created against a single PO Separate vouchers can be used for different schedules on a PO Multiple vouchers can be used for a single schedule on a PO Matching ensures the total amount vouchered does not exceed the schedule amounts by the tolerance Matching: Matching Types of Matching Two-Way Voucher to PO Used when receipt not required on PO line Three-Way Voucher to PO, Voucher to Receipt Used when receipt required on PO line Matching ensures Vendor is not overpaid by invoicing more than the quantity or amount on the PO Payment is not made for goods that have not been received (if applicable) Payment is not made to a different vendor than that specified on the purchase order Matching is a scheduled process Runs three times a day.