IU and Dell: Upcoming changes to Purchasing e-docs

Transcription

1 Nathan Smith Technology Purchasing Contract Manager IU Purchasing Department John Fox Manager of Technical Operations IU FMS Accounts Payable IU and Dell: Upcoming changes to Purchasing e-docs CATS Frangipani Room, IMU September 18 th, 2014

2 CHANGES? WHAT CHANGES? Uh Oh! We ve all experienced changes at IU. Today we hope to make any Uh oh, changes reaction into Oh, that s a change for the best reaction. At least in understanding one specific change. And that is Dell becoming an e- Invoice vendor. But what is meant by e-invoice vendor? I N D I A N A U N I V E R S I T Y 1

3 e-invoice Vendor - a description An e-invoice Vendor is a vendor that receives and transmits electronic files to and from their customer. These electronic files are customer item orders and the vendor s billing invoices for those orders. Computers used by the vendor and customer turn these files into Requisitions, Purchase Orders, and Payment Requests. This arrangement is known as e-invoicing or B2B. I N D I A N A U N I V E R S I T Y 2

4 Is e-invoicing new at IU? No, e-invoicing has been used by IU for sometime now. You may not have realized: The Shop Catalogs in OneStart are e- Invoicing for Requisitions and Purchase Orders. AP has been processing e-invoice files for nine vendors since The e-invoice process presently accounts for over 7500 PREQs per quarter, or one of every 10 PREQs processed. I N D I A N A U N I V E R S I T Y 3

5 But Why Dell? Because Dell submits approximately 1000 billing invoices per quarter to IU. Because Dell already exists in the Shop Catalogs as a vendor. Because we have the technology! The technology to be better...stronger...faster! The technology to realize the benefits. Benefits? Yes, there are benefits. But let s discuss the minor differences you will see with Dell purchase orders and notifications first. I N D I A N A U N I V E R S I T Y 4

6 KFS Single Line Item Description Purchase Orders KFS Items Description Field (NEW LOOK)! 3 line item REQ/PO example below 89 to 3 line items for this example Limited hardware description specifications Workflow Action List approvals I N D I A N A U N I V E R S I T Y 5

7 Dell Order Notifications 3 notifications for each PO (First ) Acknowledged (Second ) Confirmed (Third and last ) Shipped I N D I A N A U N I V E R S I T Y 6

8 Dell Order Notifications (Contd) (First ) Acknowledged Example Order Details I N D I A N A U N I V E R S I T Y 7

9 Dell Order Notifications (Contd) Who is notified? KFS Requestor (any address specified) Purchasing I N D I A N A U N I V E R S I T Y 8

10 Order Processing Changes No Partial Shipments Expectations I N D I A N A U N I V E R S I T Y 9

11 Changes - Dell e-invoice Billing for the document approver You will not see much of a difference when you receive a Dell e-invoice PREQ. No supporting documentation tab on the PREQ. Shipping location details in the PREQ notes section. Payment for the full system order. Dell does not bill partial orders with e-invoicing. PREQ Initiator will be KFS. I N D I A N A U N I V E R S I T Y 10

12 Changes - Dell e-invoice Billing for the PREQ creation Reduced processing steps for creating PREQs. The e-invoicing process takes 1 day to create PREQs because its fully automated. E-Invoicing workflow Traditional methods (Mail or ) can take up to 7 to 10 days before a PREQ is created. This is because of multiple points of transition. Mail Invoicing workflow Invoicing workflow I N D I A N A U N I V E R S I T Y 11

13 The Benefits of e-invoicing IU Departments placing Dell orders Increase time to review and approve routed payment. This is due to the e-invoice process creating and routing PREQs in one day versus approximately 10 days through current methods. Reduction in late fees due to lost or delayed invoices. Dell Reduction in man hours associated with invoice creation. Reduction in man hours mailing invoices to IU. Reduction in material cost due to invoice creation. Reduction in payment delays attributable to lost or delayed invoices. IU Accounts Payable Reduced man hours physically receiving and preparing paper invoices. Reduced man hours physically transferring paper invoices into digital format. Reduced man hours manually creating payments into KFS. Reduced man hours physically indexing digital images into digital image warehouse. Reduced man hours physically handling and transferring paper invoices to secure document storage. I N D I A N A U N I V E R S I T Y 12

14 The Benefits of e-invoicing continued IU Mail Services Reduction in receiving invoices from US Postal to main Mail Services Central Sorting location. Reduction in sorting invoices from Mail Services Central Sorting to Poplars Mail Services office. Reduction in sorting invoices delivered to Poplars Mail Services office to the Accounts Payable Department. IU Data Warehouse Reduction in space allocation issue due to reduction in invoices needing to being stored. Overall Deceased usage of paper invoices is a move toward IU s focus on better sustainability practices. Increased worker productivity. More time for other job tasks that were previously dedicated to manually invoicing and payment. Since the benefits are so great, we are planning on adding more vendors to the e-invoicing process in the future! I N D I A N A U N I V E R S I T Y 13

15 Dude, you re getting a Dell! Questions and Answers. I N D I A N A U N I V E R S I T Y 14

16 Contact information Nathan Smith Technology Purchasing Contract Manager Indiana University Purchasing Department P: John Fox Manager of Technical Operations Indiana University FMS Accounts Payable P: Thank you for your attendance and participation today! I N D I A N A U N I V E R S I T Y 15