PROCURE-TO-PAY (P2P) PROCESS ENHANCEMENTS STATUS REPORT

1
PROCURE-TO-PAY (P2P)PROCESS ENHANCEMENTSSTATUS
REPORT

• THROUGH APRIL 2007

2
Procure-to-Pay Process EnhancementsFY06 Results

• Payment within supplier terms increased 4 FY06
  over FY05
• PO Invoices on hold greater than 30 days were
  reduced by 73
• 8 Schools/Centers reached zero holds gt 30 days
• 6 Schools/Centers reduced holds gt 30 days by 80
  or better
• PO Invoices Not Entered In Within 30 Days were
  reduced by 15
• 10 Schools/Centers attained 50 reduction or
  greater
• 5 Schools/Centers attained 40 reduction
• PO Approval After Supplier Invoice Date were
  reduced by 16
• 8 Schools/Centers attained 50 reduction or
  greater
• 3 Schools/Centers attained 40 reduction
• Invoice Rejections were reduced by 42

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Procure-to-Pay Process EnhancementsKey
Performance Metrics

• PO Supplier Payment Performance
• This metric is the key indicator for payment
  results which are driven by eliminating the
  following process exceptions
• PO Invoices on Hold Greater Than 15 Days
• Invoice holds are not being cleared in a timely
  manner resulting in late payments
• FY07 Goal is zero greater than 30 days by 12/1/06
  and zero greater than 15 days by 6/30/07
• Cycle time for PO Managers to clear holds should
  be 7 days or less
• PO Invoices Not Entered In Within 30 Days
• Invoices are being received in the departments
  and not forwarded to AP in a timely manner to
  ensure payment within terms
• Procurement policy states all PO invoices should
  be sent directly to AP by the supplier
• PO Approval After Supplier Invoice Date
• POs are not properly approved before the
  purchase
• POs are being created and approved after the
  supplier invoice is received
• Potential exists for double payment or shipment
  and purchase commitments are not properly stated
• C Form Processing
• Expenditures are not subject to approval before
  the purchase
• C Forms are a totally manual process and
  represent 25 to 30 of AP transactions processed
• Wider use of POs would better leverage
  University spend
• Invoice Rejections
• Invoices are rejected and returned to suppliers
  when they do not have the proper PO number or
  vendor information or if the PO has been finally
  closed

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Procure-to-Pay Process EnhancementsPO Supplier
Payment Performance

• PO Supplier Payment Performance
• FY 2007 Goal - Increase invoices paid within
  terms to 75 or higher
• FY 2006 Baseline 59
• For March 2007 PO invoices paid within supplier
  terms were 74, an 11 increase from February
• YTD payment performance through March 2007 was
  60 a 1 increase over the FY06 baseline

Payment Within Terms
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Procure-to-Pay Process EnhancementsPO Invoices
on Hold

• PO Invoices on hold greater than 30 days
• FY 2007 Goal Eliminate holds gt 30 days and move
  holds processing to within 7 days
• FY 2006 Baseline is 246 holds as of June 30, 2006
• YTD holds gt 30 days decreased to 224, a 9
  decrease over the baseline

Invoices on Hold gt 30 Days
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Procure-to-Pay Process EnhancementsPO Invoices
on Hold
NEW MEASUREMENT DECEMBER 1, 2006
Invoices on Hold gt 15 Days

• PO Invoices on hold greater than 30 days
• FY 2007 Goal Eliminate holds gt 15 days by June
  30, 2007 and move holds processing to within 7
  days
• FY 2006 Baseline is 503 holds as of November 30,
  2006
• YTD holds gt 15 days decreased to 392, a 22
  decrease over the baseline

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Procure-to-Pay Process EnhancementsPO Invoices
Not Entered Within 30 Days

• PO Invoices not entered into BEN within 30 days
• FY 2007 Goal 50 reduction in this exception.
  Long-term goal is zero exceptions.
• FY 2006 Baseline is 3,315 average monthly
  exceptions for FY 2006
• April 2007 invoices not entered in 30 days
  decreased to 2,073, a 38 decrease over the
  baseline

Invoices Not Entered Within 30 Days
8
Procure-to-Pay Process Enhancements PO Approval
After Supplier Invoice Date

• PO approval after the supplier invoice date
• FY 2007 Goal 50 reduction in this exception.
  Long-term goal is zero exceptions.
• FY 2006 Baseline is 2,500 average monthly
  exceptions for FY 2006
• April 2007 PO approval after the supplier invoice
  date decreased to 1,253, a 50 reduction over
  the baseline

PO Approval After Supplier Invoice Date
9
Procure-to-Pay Process Enhancements C Form
Processing

• C Form Processing
• FY 2007 Goal 20 reduction in C forms
  processed. Long-term goal is zero exceptions.
• FY 2006 Baseline is 6,840 average monthly C forms
  processed for FY 2006
• April 2007 C form processing was 6,288, a 8
  decrease over the baseline

C Form Processing
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Procure-to-Pay Process Enhancements Invoice
Rejections

• Invoice rejections
• FY 2007 Goal Reduce invoices rejected by 50
• FY 2006 Baseline is 555 invoice rejections from
  June 2006
• February 2007 invoice rejections decreased to
  212, a 62 decrease over the baseline

Invoice Rejections