University of Bradford e5.2 Implementation. Invoice Mismatch Resolution

Transcription

1 Invoice Mismatch Resolution Prepared by Mike Pattison Advanced Business Solutions PrismTech House 5th Avenue Business Park Team Valley Gateshead Tyne and Wear NE11 0NG Tel: +44 (0) Fax: +44 (0) Web: Version 1.0

2 Contents 1 Introduction Invoice/Order Matching Business Event Manager Price Mismatches Quantity Mismatch Value Mismatch Page 2

3 1 Introduction 1.1 An invoice mismatch occurs when there is a discrepancy between the supplier invoice and the system EXPECTED invoice 1.2 The following document describes the system actions and supporting business processes that are required to support the resolution of such mismatches 1.3 There are 4 different types of mismatch that can occur: PRICE The invoice price does not agree to the order price QUANTITY The invoice quantity does not agree to the outstanding received quantity VALUE The invoice value does not agree to the outstanding received value (applies to service type lines) MISCELLANEOUS CHARGE There is a charge on the invoice that does not appear on the purchase order. Note miscellaneous charges are not covered within this version of the document. 1.4 One or more of the different types of mismatch can occur on a single invoice line Page 3

4 2 Invoice/Order Matching Accounts Payable - What happens at Invoice/Order Matching stage? 2.1 To better understand the mismatch resolution procedures it is useful to understand what actually happens within Accounts Payable (AP) at invoice/order matching stage. The notes below briefly outline the data entry procedure within AP for ORDER RELATED invoices 2.2 When entering an order related invoice the data entry clerk will enter the PO number on the invoice header 2.3 Once the Header is complete the clerk will move to the invoice lines. At this point, due to the presence of the PO number, the system will build what it expects the invoice line detail should be based on the PO & Receipting activity to date. ACCOUNTS PAYABLE PURCHASING MANAGEMENT INVOICE HEADER Enter PO Number INVOICE LINES System will build EXPECTED invoice based on PO & Receipt Detail PO LINES Unit Price Line 1 Line 2 etc Line 1 Line 2 etc Price Qty/Value RECEIPT LINES Line 1 Line 2 etc Quantity/Value received qty/val received qty/val 2.4 When there are discrepancies between the invoice cost and the PO cost, the system validation insists that invoice header cost must equal the total of the entered lines otherwise the invoice cannot be updated. Therefore the user must identify where these differences exist and take corrective action. This action will take the form of either amending the invoice line price and / or the line quantity to reflect the invoice price / quantity. 2.5 Upon amending the invoice line the system will then validate the discrepancy between the invoice and the PO and if the discrepancy is outside of acceptable tolerances the invoice will be updated with a HELD status. 2.6 A held status means that the invoice is on the system and is available for enquiry purposes against the relevant supplier account, but while it remains in the held status it cannot be paid 2.7 The held invoice must then be investigated further and depending on the outcome of that investigation, the appropriate action must be taken to release the invoice in order that it can be paid. Page 4

5 3 Business Event Manager 3.1 Business Event Manager (BEM) refers to the internal workflow messaging that exists within e5. Whenever certain events take place within e5, the system will automatically alert the user to the occurrence of this event. This alert will take the form of an and/or an entry being made on the users Action List as shown below. 3.2 Whenever an invoice/order mismatch occurs the system will send out an alert to a (generic) user who is associated with the PO and who is expected to undertake the first line of investigation into why a mismatch has occurred 3.3 For mismatch queries it is the BUYER on the PO to whom the alert/ will be sent. In regards to University of Bradford, the Buyer is effectively the person responsible for the PO as this person will almost certainly be the person who raised the original requisition that was the source of the purchase order 3.4 When a user encounters an entry in their Action List they should use the Action Event button and the system will then take the user to the most appropriate screen for them to begin their investigation. 3.5 Upon completely resolving the mismatch the entry in the Action List will be deleted. For actions related to mismatches the held invoice must be cleared from this status before the action is complete. This may not always be immediate, as the notes following will explain. Page 5

6 4 Price Mismatches 4.1 A price mismatch will occur when there is a difference between the invoice unit price and the order unit price and this difference falls outside of acceptable tolerances. The invoice can be updated to the system but will be in a held status. The owner of the PO (Buyer) will be alerted via the business event manager function. 4.2 To investigate/resolve the price discrepancy the first step is to click on the Action Event button from the Action List (MXEJ) as shown in section 3 above 4.3 Upon invoking the Action Event process the system will take you to the Invoice Clearance screen (MGDV) as below. 4.4 When you access this screen from the Action List (MXEJ), there will only ever be a single row displayed. You simply highlight this row and then click on the Agree Price/Release Invoice button to move to the next screen. Page 6

7 4.5 This will take you to the Invoice Clearance Edit screen (MGDW) as shown below. It is here that you will see both the invoice price and the purchase order price. 4.6 The order reference is also displayed as well as the specific order line to which the mismatch relates The next step depends on the nature of the discrepancy: 4.7 Invoice Price > Order Price and the Invoice Price is correct If you accept the invoice price, you are effectively accepting a cost that is greater than was previously authorised. You should follow whatever internal procedures have been put in place to ensure the authorisation process is not compromised. (For example you may wish to contact the original authoriser by forwarding on the alert you received explaining the reason for the discrepancy) Assuming it is ok to accept the higher price, you click on Agree Invoice Price. This will populate the Agreed Price field with the invoice price Now click Update. This will update the invoice with the agreed price and will release the invoice from its held status. The invoice can now be paid at the original invoice price The entry on your Action List relating to this price mismatch will be automatically deleted Note consider use of PAPERCLIP to attach any notes and/or supporting documentation that might be useful for future reference. Page 7

8 4.8 Invoice Price > Order Price and the Order Price is correct The assumption here is that you request a credit from the supplier for the difference in the PO line cost and the Invoice line cost It is recommended that only when the credit has been received should the invoice be then released from its held status Assuming this is the case you simply Exit from screen MGDW without updating and return to the Action List (MXEJ) The price mismatch action will then remain on your list and will serve as a reminder that a credit is due Note you should consider use of PAPERCLIP to attach any notes and/or supporting documentation that might be useful for future reference, especially when a credit has been requested. This will make for easy reference for yourself (in the event you have multiple actions on your list) and also anyone in AP that deals with supplier queries or who will ultimately process the credit when it is received It is assumed the credit will be received centrally within Accounts Payable and that this credit will quote the relevant PO number. This will prompt AP to look for the presence of an associated invoice in a held status Assuming the credit can be reconciled to the held invoice, the procedure is that the AP clerk will process the credit AND will also release the held invoice by agreeing the invoice price (as described in 4.7 above) Once the invoice has been released, the entry on your Action List relating to the original price mismatch will be automatically deleted 4.9 Invoice Price < Order Price and the Invoice Price is correct The assumption here is that you will agree the invoice price and release the invoice from the held status This being the case you click on Agree Invoice Price. This will populate the Agreed Price field with the invoice price Now click Update. This will update the invoice with the agreed price and will release the invoice from its held status. The invoice can now be paid at the original invoice price The entry on your Action List relating to this price mismatch will be automatically deleted 4.10 Invoice Price < Order Price and the Order Price is correct The assumption here is that you will agree the invoice price and release the invoice from the held status This being the case you click on Agree Invoice Price. This will populate the Agreed Price field with the invoice price Now click Update. This will update the invoice with the agreed price and will release the invoice from its held status. The invoice can now be paid at the original invoice price The entry on your Action List relating to this price mismatch will be automatically deleted Note should you wish to pay the order price you would be required to request a new invoice from the supplier and the original invoice would have to be cancelled Page 8

9 5 Quantity Mismatch 5.1 When an order related invoice is processed the system will attempt to MATCH the invoice quantity to the outstanding received quantity as is showing on the system at the time the invoice is processed. A quantity mismatch will occur when the invoice quantity is greater than the available received quantity currently on the system. 5.2 For example, if no receiving activity has taken place for the order line in question, the system will have zero quantity to match to. Similarly if the order line has been under received or the supplier has genuinely over invoiced, the system will not be able to fully match the invoice quantity. 5.3 The invoice can be updated to the system but will be in a held status. The owner of the PO (Buyer) will be alerted via the business event manager function. 5.4 To investigate/resolve the quantity discrepancy the first step is to click on the Action Event button from the Action List (MXEJ) as shown in section 3 above 5.5 Upon invoking the Action Event process the system will take you to the Supplier Transaction screen (MGEA) as below. When you access this screen from the Action List (MXEJ), there will only ever be a single row displayed. You simply highlight this row and then click on the Invoice Lines button to move to the next screen. Page 9

10 5.6 This will take you to the Line Details screen (MGEB) as shown below. Those lines that are held for a Quantity mismatch can be identified by the presence of a Q in the Status field. (Note - a P indicates a price mismatch and a V indicates a value mismatch) 5.7 The two fields to focus on are: Inv Qty Match Qty the quantity on the suppliers invoice the quantity the system has been able to match (this will range from zero to any value that is less than the invoice quantity) You will not be able to ascertain exactly what corrective action is required based on these fields however it will give you an initial indication of what the problem might be 5.8 To continue your investigation click on the Order Line Enquiry button Page 10

11 5.9 This will take you to the Order Line List screen (MDOB) as below. The second tab on this screen Received/Invoiced will show the value of goods received to date however it is not necessary to visit this tab and the next screen will provide more detailed receipt information 5.10 Click on the Receive Goods/Services button to move to the next screen Page 11

12 5.11 This will take you to the Goods Receive screen (MPLE) as below. The main fields to note here are as follows: Order Qty Rcvd to Date O/S to Rcpt Qty to Rcve the original quantity ordered on this order line what has actually been received to date against this order line what the system believes is yet to be received if you do wish to receive goods against this line, you would enter the quantity to be received in this field (see below) The next step depends on the nature of the discrepancy. The examples on the following pages are not intended to cover every possible quantity mismatch scenario rather the aim is to provide a few simple examples which consider what are expected to be the more common occurrences. These examples should provide the user with enough detail to manage the majority of the quantity mismatch scenarios they will be expected to deal with. Page 12

13 5.12 Invoice quantity is correct and total invoiced quantity does NOT exceed the original Order quantity. Goods have been received but NO receipt details have yet been recorded on the system If it is simply a case that the goods receipt details have not been entered on the system you can now perform the goods receiving on this screen (MPLE) Enter the quantity received in the Qty to Rcve field as shown above. This should be the quantity you have actually received and not necessarily the outstanding quantity Now click Update to save your changes and update the receipt detail Exit back to the Action List (MXEJ) The entry on your Action List related to this quantity mismatch will NOT be deleted immediately from the system. A process must be run which will attempt to match the newly entered receipt against the held quantity on the invoice. This process is run on a nightly basis. Assuming the received quantity is sufficient to satisfy the unmatched invoice quantity, the system will match the two quantities and the invoice will be released from its held status. The entry on your Action List will also be automatically deleted Invoice quantity is correct and total invoiced quantity does NOT exceed the original Order quantity. Receipting activity has taken place however there is insufficient outstanding receipt quantity to satisfy the invoice This scenario is very similar to that described in 5.12 above. The slight difference is that receipts do exist for the order line however there is still insufficient outstanding quantity to satisfy the invoice. The resolution is also the same in that the additional received quantity should be entered on this screen Enter the quantity received in the Qty to Rcve field as shown above. This should be the quantity you have actually received and not necessarily the outstanding quantity Now click Update to save your changes and update the receipt detail Exit back to the Action List (MXEJ) The entry on your Action List related to this quantity mismatch will NOT be deleted immediately from the system. A process must be run which will attempt to match the newly entered receipt against the held quantity on the invoice. This process is run on a nightly basis. Assuming the received quantity is sufficient to satisfy the unmatched invoice quantity the system will match the two and the invoice will be released from its held status. The entry on your Action List will also be automatically deleted Page 13

14 5.14 Invoice quantity is correct BUT DOES exceed the original Order quantity In this scenario receipting activity may or may not have already taken place. It doesn t really matter which, as the main point to consider here is that a greater quantity has been delivered than was originally ordered. This may be on a single invoice or may be across multiple deliveries/invoices but the end result is that even if the full order quantity is received, there will still be insufficient quantity to satisfy the invoice Assuming the over delivery has been verified and you wish to keep the excess goods you are able to over receipt against the order line. If you do over receive you are effectively accepting a cost that is greater than was previously authorised. Therefore, you should follow whatever internal procedures have been put in place to ensure the authorisation process is not compromised. (For example you may wish to contact the original authoriser by forwarding on the alert you received explaining the reason for the extra quantity) In regards to actually receiving the extra goods, you follow the same steps as in 5.12 and 5.13 above; you simply enter the quantity to be received in the Qty to Rcve field as shown on the screen MPLE As you are over receiving, the system will generate a warning message informing of this fact. You should accept the warning and then Update as normal to save your changes and update the receipt detail Exit back to the Action List (MXEJ) The entry on your Action List related to this quantity mismatch will NOT be deleted immediately from the system. A process must be run which will attempt to match the newly entered receipt against the held quantity on the invoice. This process is run on a nightly basis. Assuming the received quantity is sufficient to satisfy the unmatched invoice quantity the system will match the two and the invoice will be released from its held status. The entry on your Action List will also be automatically deleted 5.15 Invoice quantity is INCORRECT, the Supplier has Over Invoiced In the event the Supplier has genuinely over invoiced, the assumption is you will request a credit from the Supplier Assuming this is the case you simply Exit from screen MPLE (or whichever screen you are on) without updating and return to the Action List (MXEJ) The quantity mismatch action will then remain on your list and will serve as a reminder that a credit is due Note you should consider use of PAPERCLIP to attach any notes and/or supporting documentation that might be useful for future reference, especially when a credit has been requested. This will make for easy reference for yourself (in the event you have multiple actions on your list) and also anyone in AP that deals with supplier queries or who will ultimately process the credit when it is received It is assumed the credit will be received centrally within Accounts Payable and that this credit will quote the relevant PO number. This will prompt AP to look for the presence of an associated invoice in a held status Assuming the credit can be reconciled to the held invoice, the procedure is that the AP clerk will process the credit and this in turn will also release the held invoice by matching the credit quantity against the unmatched invoice quantity. This will all happen automatically and will not require further intervention from the order owner Once the invoice has been released, the entry on your Action List relating to the original quantity mismatch will be automatically deleted Page 14

15 6 Value Mismatch NOTE It is important to appreciate that value mismatches are handled by the system in a similar manner as for quantity mismatches. The order line value is handled more as a quantity than it is a price. The reason for this is to facilitate the goods receiving process and in particular partial receipts of a service (value). The knock on effect of this is that when matching an invoice line to a service/value line, the system does NOT invoke price tolerances and hence a value mismatch can occur when the difference is relatively small. It is important therefore that when receiving against a value line, you do consider what you expect the invoice cost to be and whether this will be for a value greater than was originally included on the order line. If this is the case and there is a genuine reason for this higher value, you should over receive against the line and thus avoid the mismatch at invoicing stage (see 6.x.x below) 6.1 When an order related invoice is processed for a value or service type order line, the system will attempt to MATCH the invoice value to the outstanding received value as is showing on the system at the time the invoice is processed. A value mismatch will occur when the invoice value is greater than the available received value currently on the system. 6.2 For example, if no receiving activity has taken place for the order line in question, the system will have zero value to match to. Similarly if the order line has been under received or the supplier has genuinely over invoiced, the system will not be able to fully match the invoice value. 6.3 The invoice can be updated to the system but will be in a held status. The owner of the PO (Buyer) will be alerted via the business event manager function. 6.4 To investigate/resolve the value discrepancy the first step is to click on the Action Event button from the Action List (MXEJ) as shown in section 3 above Page 15

16 6.5 Upon invoking the Action Event process the system will take you to the Supplier Transaction screen (MGEA) as below. When you access this screen from the Action List (MXEJ), there will only ever be a single row displayed. You simply highlight this row and then click on the Invoice Lines button to move to the next screen. Page 16

17 6.6 This will take you to the Line Details screen (MGEB) as shown below. Those lines that are held for a Quantity mismatch can be identified by the presence of a Q in the Status field. (Note - a P indicates a price mismatch and a V indicates a value mismatch) 6.7 The two fields to focus on are: Inv Price the price/value on the suppliers invoice Match Value the value the system has been able to match (this will range from zero to any value that is less than the invoice value) You will not be able to ascertain exactly what corrective action is required based on these fields however it will give you an initial indication of what the problem might be 6.8 To continue your investigation click on the Order Line Enquiry button Page 17

18 6.9 This will take you to the Order Line List screen (MDOB) as below. The second tab on this screen Received/Invoiced will show the value of goods received to date however it is not necessary to visit this tab and the next screen will provide more detailed receipt information 6.10 Click on the Receive Goods/Services button to move to the next screen Page 18

19 6.11 This will take you to the Service Value Receive screen (MPLF) as below. The main fields to note here are as follows: Order Val Rcvd to Date O/S to Rcpt Val to Rcve the original value ordered on this order line what has actually been received to date against this order line what the system believes is yet to be received if you do wish to receive a value against this line, you would enter the value to be received in this field (see below) The next step depends on the nature of the discrepancy. The examples on the following pages are not intended to cover every possible value mismatch scenario rather the aim is to provide a few simple examples which consider what are expected to be the more common occurrences. These examples should provide the user with enough detail to manage the majority of the value mismatch scenarios they will be expected to deal with. Page 19

20 6.12 Invoice value is correct and total invoiced value does NOT exceed the original Order value. The service has been performed but NO receipt details have yet been recorded on the system If it is simply a case that the service value details have not been entered on the system you can now perform the receiving function on this screen (MPLF) Enter the service value in the Val to Rcve field as shown above. This should be the value of the service actually delivered and not necessarily the outstanding value NOTE the value received should be the value excluding VAT Now click Update to save your changes and update the receipt detail Exit back to the Action List (MXEJ) The entry on your Action List related to this value mismatch will NOT be deleted immediately from the system. A process must be run which will attempt to match the newly entered receipt against the held quantity on the invoice. This process is run on a nightly basis. Assuming the received value is sufficient to satisfy the unmatched invoice value, the system will match the two values and the invoice will be released from its held status. The entry on your Action List will also be automatically deleted Invoice value is correct and total invoiced value does NOT exceed the original Order value. Receipting activity has taken place however there is insufficient outstanding receipt value to satisfy the invoice This scenario is very similar to that described in 5.12 above. The slight difference is that receipts do exist for the order line however there is still insufficient outstanding value to satisfy the invoice. The resolution is also the same in that the additional received value should be entered on this screen Enter the value received in the Val to Rcve field as shown above. This should be the value you have actually received and not necessarily the outstanding value NOTE the value received should be the value excluding VAT Now click Update to save your changes and update the receipt detail Exit back to the Action List (MXEJ) The entry on your Action List related to this value mismatch will NOT be deleted immediately from the system. A process must be run which will attempt to match the newly entered receipt against the held value on the invoice. This process is run on a nightly basis. Assuming the received value is sufficient to satisfy the unmatched invoice value the system will match the two and the invoice will be released from its held status. The entry on your Action List will also be automatically deleted Page 20

21 6.14 Invoice value is correct BUT DOES exceed the original Order value In this scenario receipting activity may or may not have already taken place. It doesn t really matter which, as the main point to consider here is that a greater value of service has been delivered than was originally ordered. This may be on a single invoice or may be across multiple deliveries/invoices but the end result is that even if the full order value is received, there will still be insufficient value to satisfy the invoice Assuming the additional service value has been verified you are able to over receipt against the order line. If you do over receive you are effectively accepting a cost that is greater than was previously authorised. Therefore, you should follow whatever internal procedures have been put in place to ensure the authorisation process is not compromised. (For example you may wish to contact the original authoriser by forwarding on the alert you received explaining the reason for the extra value) In regards to actually receiving the extra value, you follow the same steps as in 6.12 and 6.13 above; you simply enter the value to be received in the Val to Rcve field as shown on the screen MPLF NOTE the value received should be the value excluding VAT As you are over receiving, the system will generate a warning message informing of this fact. You should accept the warning and then Update as normal to save your changes and update the receipt detail Exit back to the Action List (MXEJ) The entry on your Action List related to this value mismatch will NOT be deleted immediately from the system. A process must be run which will attempt to match the newly entered receipt against the held value on the invoice. This process is run on a nightly basis. Assuming the received value is sufficient to satisfy the unmatched invoice value the system will match the two and the invoice will be released from its held status. The entry on your Action List will also be automatically deleted Page 21

22 6.15 Invoice value is INCORRECT, the Supplier has Over Invoiced In the event the Supplier has genuinely over invoiced, the assumption is you will request a credit from the Supplier Assuming this is the case you simply Exit from screen MPLE (or whichever screen you are on) without updating and return to the Action List (MXEJ) The value mismatch action will then remain on your list and will serve as a reminder that a credit is due Note you should consider use of PAPERCLIP to attach any notes and/or supporting documentation that might be useful for future reference, especially when a credit has been requested. This will make for easy reference for yourself (in the event you have multiple actions on your list) and also anyone in AP that deals with supplier queries or who will ultimately process the credit when it is received It is assumed the credit will be received centrally within Accounts Payable and that this credit will quote the relevant PO number. This will prompt AP to look for the presence of an associated invoice in a held status Assuming the credit can be reconciled to the held invoice, the procedure is that the AP clerk will process the credit and this in turn will also release the held invoice by matching the credit value against the unmatched invoice value. This will all happen automatically and will not require further intervention from the order owner Once the invoice has been released, the entry on your Action List relating to the original value mismatch will be automatically deleted Page 22