Purchase to Pay P2P Briefing

1
Purchase to Pay (P2P)Briefing
Faculty Procurement Office FACULTY OF MEDICINE
AND HEALTH

• Bob Lavery
• Faculty Procurement Manager

Produced for the staff in the University of
Leeds. No responsibility is taken for the
accuracy of the content. Bob Lavery - Faculty
Procurement Manager
2
The Procurement Process
Faculty Procurement Office FACULTY OF MEDICINE
AND HEALTH
End Users
Procurement Office
End Users
Accounts Payable
Business Requirement to Purchase
Purchase Requisition
Budget Holder Approval
FA Approval
Release Purchase Order
Delivery Receipt (GRN)
Purchase Invoice verification
Purchase Invoice Payment
(Faculty Finance)
Produced for the staff in the University of
Leeds. No responsibility is taken for the
accuracy of the content. Bob Lavery - Faculty
Procurement Manager
3
Areas of most significant change in the
Purchasing Process
Faculty Procurement Office FACULTY OF MEDICINE
AND HEALTH
Previously, Invoices used to have to match the
Purchase Order and be Delivery Receipted (GRN)
prior to posting into SAP.

• Purchase
• Invoice
• verification

Now Invoices are posted into SAP providing there
is a valid Purchase Order No and then blocked for
payment only if appropriate.
Previously, some deliveries (e.g. Services like
Travel) could have GR Tick removed on the
Purchase Order to enable the Invoice to be posted
Delivery Receipt (GRN)
Now, everything must be Delivery Receipted
(GRN) This is your control over your Finances.
Produced for the staff in the University of
Leeds. No responsibility is taken for the
accuracy of the content. Bob Lavery - Faculty
Procurement Manager
4
When can an invoice not be posted into SAP?
Faculty Procurement Office FACULTY OF MEDICINE
AND HEALTH
Purchase Invoice verification

• No Purchase Order raised in SAP (Retrospective?)
• No valid Purchase Order No Quoted on Invoice
• Invalid Invoice for example
• Addressed to the wrong organisation
• (i.e. NOT The University of Leeds)
• Incorrect Invoice Address (i.e. NOT EC Stoner)
• Standard Action is to Return the Invoice to the
  Vendor

Produced for the staff in the University of
Leeds. No responsibility is taken for the
accuracy of the content. Bob Lavery - Faculty
Procurement Manager
5
What blocks an invoice from being paid against a
valid Purchase Order?
Faculty Procurement Office FACULTY OF MEDICINE
AND HEALTH
Purchase Invoice verification

• Price is outside University agreed tolerances
• Unplanned Delivery Costs
• Quantity mismatches
• VAT shown on Invoice is different to that shown
  on Purchase Order
• Delivery Receipting (GRN)has not been carried
  out.

Produced for the staff in the University of
Leeds. No responsibility is taken for the
accuracy of the content. Bob Lavery - Faculty
Procurement Manager
6
Price Tolerances
Faculty Procurement Office FACULTY OF MEDICINE
AND HEALTH

• Price Tolerances have not changed as a result of
  P-2-P
• They are set in SAP at Line Item Level
• Upper Limit is Plus 25.00 (Revision due soon)
• Lower Limit is Minus 50.00

Produced for the staff in the University of
Leeds. No responsibility is taken for the
accuracy of the content. Bob Lavery - Faculty
Procurement Manager
7
Invoices Blocked Report
Faculty Procurement Office FACULTY OF MEDICINE
AND HEALTH
Purchase Invoice verification

• MRBR Report Standard Reporting in SAP
• Run daily by colleagues in Faculty Finance
• Finance colleagues contact end users for query
  resolution

Produced for the staff in the University of
Leeds. No responsibility is taken for the
accuracy of the content. Bob Lavery - Faculty
Procurement Manager
8
Sources of Mismatching Errors
Faculty Procurement Office FACULTY OF MEDICINE
AND HEALTH

• Vendor
• Requisitioner
• (Contract Dispute? gt Purchasing Office)
• Delivery Receipt Point (GRN)
• Budget Exceeded
• Cost Object Closed
• Other Errors Omissions e.g. Purchasing

Produced for the staff in the University of
Leeds. No responsibility is taken for the
accuracy of the content. Bob Lavery - Faculty
Procurement Manager
9
Faculty Procurement Office FACULTY OF MEDICINE
AND HEALTH
Produced for the staff in the University of
Leeds. No responsibility is taken for the
accuracy of the content. Bob Lavery - Faculty
Procurement Manager
10
Faculty Procurement Office FACULTY OF MEDICINE
AND HEALTH
Produced for the staff in the University of
Leeds. No responsibility is taken for the
accuracy of the content. Bob Lavery - Faculty
Procurement Manager
11
Faculty Procurement Office FACULTY OF MEDICINE
AND HEALTH
Produced for the staff in the University of
Leeds. No responsibility is taken for the
accuracy of the content. Bob Lavery - Faculty
Procurement Manager
12
Faculty Procurement Office FACULTY OF MEDICINE
AND HEALTH
Produced for the staff in the University of
Leeds. No responsibility is taken for the
accuracy of the content. Bob Lavery - Faculty
Procurement Manager