Department of Finance and Administration

Office of the Mississippi Management and Reporting System

WorkshopPresentation PRO37
LogisticsInvoiceVerification
1182012
1/27/2012 1
1. Workshop Ground Rules
2. Workshop Guiding Principles
3. Workshop Objectives
4. Workshop Agenda in Detail
5. Workshop Roles
6. Workshop Content
7. Workshop Wrap-up
1/27/2012 2
AGENDA
1/27/2012 3
Allparticipantsshouldbefamiliarwiththerequirementsandthe
topicstobecovered;
Theworkshopscribeisresponsiblefordocumentingtheparkinglot
issuesandfollowupquestions;
Theworkshopfacilitatorsareresponsibleforkeepingthediscussion
centeredonthetopicbeingdiscussed.Ifanissueisdetermined
thatcannotberesolvedduringtheworkshop,thefacilitatorwill
notetheissueforfutureresolutionandenteritintotheworkshop
outputdocument;and
Parkingofdiscussionitemiftherequiredknowledgeisnotinthe
room.
Workshop Ground Rules
Workshop Guiding Principles
1/27/2012 4
Workshop Participant
Demonstratehowrequirementsaremet
usingStandardSAPfunctionality
UtilizestandardSAPfunctionality(80/20
rule)
Avoidthewhatwontworkmindset
Beattentiveandopenminded
Explorequestionsandanswers
Encourageinputfromotherparticipants
Refrainfromabsolutesandmandates
Focusoncurrentissuebeingdiscussed
Avoidwarstories
Managecellphone,pagers&
interruptions
Keeptheconversationstooneatatime
Essentialtodos:
ReviewBusinessProcessModel
Update/CreateprocessFlow
Diagrams
WSOutputDocuments
IdentifyRICEFWObjects
Documentprocess
changes/implications
SolutionManager:
CreateBusinessBlueprint
documents
IdentifyIssuesandRisks
Workshop Objectives
1/27/2012 5
DefinethefullProcurementCycleandrelatedactivities
DefineLogisticsInvoiceVerificationandrelatedactivities
IntroducePaymentProcess
Introducetermsassociatedwithprocurementandinvoice
verification
Workshop Agenda
1/27/2012 6
Date
Topics
Deliverables
Team
Logistics/AccountsPayable
January18,2012
ProcurementCycle
LogisticsInvoiceVerification
PaymentProcessing
WorkshopMinutes
ParkingLot
Blueprint Workshop - Roles
1/27/2012 7
SAPFacilitator ZachAng,JeannaStafford
CustomerFacilitator TammyRankin,NancyJennings
Scribe AaronStein,TessaTurner
OCM
Asuccessfulworkshopistheresultofinteractionandparticipation!
Business Area, Fund, Functional Area
8
Fund
The Fundhas the same meaning as the SAAS Fund
New fund numberswill be assigned by funding sources
The field is 10 digits and the appropriationnumber will be linked
Functional Area
The Functional Areacontains the Appropriation Unit & future use is Program Budgeting
The fieldlength is a maximum of 16 digits and will consist of AU (4)/ Program (8)/
Activity (4)
Business Area
The Business Area will beusedfor theAgency Number
The field is 4 digits and new numbers will be assigned
AppropriationUnit/Program/Activity
XXXX/XXXXXXXX/XXXX
12/14/2011
General Ledger Account, Cost Center
12/14/2011 9
General Ledger Account
General Ledger (G/L) accounts will include Assets, Liabilities, Fund Balance,
Revenue and Expenditure
The field is8 digits and the Major Object Code will be built into the number
Cost Center
The Cost Center represents a division or area within an agency for recording and
reporting budgets, revenues and expenditures
The field is 10 digits and may be set up as Agency/Bureau/Agency Discretion
Agency/Bureau/AgencyDiscretion
XXXX/XX/XXXX
Project & WBS Element, Internal Order
12/14/2011 10
Projects
Projects are made up of Work Breakdown Structure (WBS) Elements- 24 digits
Funded Program Could be used to control budget at the project or WBS level
WBS Elements will be used for:
Capital Projects
ITS Services
MDOT Projects
State Aid Road Maintenance
Internal Order
This is a flexible cost collector that can be defined by the agency to meet a variety of
agency needs 10 digits
Internal Orders may be used for:
Internal Services
Events
Activities
Locations
12/14/2011 11
Grants
Grants
Grant Used to maintain the terms and conditions of the funding and
administration of a sponsors award
SponsoredClass Used withgrants to summarize expenses based on the sponsors
cost categories
Sponsored Class is generally aligned with the existingmajor expense codes
SponsoredProgram Used withgrants to track expenses based on the sponsors
programs.
1/27/2012 12
Procurement Cycle
1/27/2012 13
Procurement Cycle
Shopping
Cart
SRM
Purchase
Order
SRM
Goods
Receipt
ECC MM
Invoice
Receipt
ECC MM
Payment
FI/AP
GR
Vendor
Payment
1/27/2012 14
Procurement & Accounts Payable
MaterialsManagement
PO
GR
Invoice
FI AccountsPayable
CreateVendor
InvoicesManually
DisplayVendor
AccountBalance
Create,change,
displayVendor
MasterRecords
Display/Change
VendorLineItems
ProcessOutgoing
Payment
ProcessCreditMemosorDownPayments
1/27/2012 15
Main Procurement Cycle Documents
ShoppingCart(PurchaseRequisition)
PurchaseOrder
GoodsReceipt
InvoiceVerification
VendorPayment
RequestforQuotation
Quotation
Contract
MaterialsManagement
1/27/2012 16
Documents in Materials Management
Vendor
DeliveryDate
Conditions
Materials
Quantities
Prices
PurchaseOrder MaterialDocument LIVDocument
FinancialAccounting
DeliveryDate
Materials
Quantities
Values
Account
Postings
Vendor
Quantities
Values
Account
Postings
1/27/2012 17
Shopping Cart (Purchase Requisition)
InternalDocument
AuthorizesPurchasing
toprocure
Canbecreated
Manuallyor
Automatically
Identifiesdemandfor
aproduct/service
PurchaseRequisition
1/27/2012 18
Shopping Cart (Purchase Requisition)
MRP/
PMOrder
Manual
Creation
Shopping
Cart
Approval
Process
Process
Shopping
Cart
Requestfor
Quotation
PurchaseOrder
1/27/2012 19
Purchase Order
LegalcontractbetweenPurchasing
andtheVendor
1/27/2012 20
Purchase Order
RFQ
Contract
ShoppingCart
PurchaseOrder
PurchaseOrder
ReferenceDocuments
Vendor
Create
1/27/2012 21
Request for Quotation
ShoppingCart
ReferenceRFQ
Contract
RFQ
ReferenceDocuments
Vendor1020
Create
Vendor1050
Vendor1000
1/27/2012 22
Quotations
Vendor1000
Vendor1020
Vendor1050
QuoteforRFQ1
Item#10
GrossPrice$400/ea
Discount$50.00
QuoteforRFQ1
Item#10
GrossPrice$400/ea
Surcharge 20%
QuoteforRFQ1
Item#10
GrossPrice$500/ea
FixedFee$20.00
Comparison
Vendor1000 $350
Vendor1020 $480X
Vendor1050 $520X
Average $450
Vendor1000
PurchaseOrder
Item#10
Qty10
Price$350.00ea
X
RejectionLetter
Vendor1020
Vendor1050
1/27/2012 23
Contract
Release
PurchaseOrder
1/27/2012 24
Contract
Requisition
Requestfor
Quotation
Reference
Contract
Contract
ReferenceDocuments
ReleasePurchase
Order
Create
Delivery
Date
Quantity
1/27/2012 25
1/27/2012 26
1/27/2012 27
1/27/2012 28
1/27/2012 29
1/27/2012 30
1/27/2012 31
Goods Receipt
Vendor
Goods
Receipt
1/27/2012 32
Posting a Goods Receipt
Inwardmovementon
GoodsReceipt
1/27/2012 33
Logistics Invoice Verification
Goods
Receipt
Vendors
Invoice
__________
__________
__________
__________
Logistics
Invoice
Verification
MATERIALSMANAGEMENT FINANCIALACCOUNTING
1/27/2012 34
Posting the Logistics Invoice
1/27/2012 35
Information from an Invoice
InvoicedItems Amountperitem
Materials
Quantities
Termsof
Payment
UnitofMeasure
PurchaseOrder
Vendor
InvoicedAmount
Currency
CompanyCode
DocumentDate
Tax
1/27/2012 36
Posting a Vendor Invoice
VendorInvoice
ForPurchaseOrder
Invoice
Verification
InvoiceReceipt
1/27/2012 37
Account Postings
GoodsReceipt
GoodsReceipt
Qty.=50pc
InvoiceReceipt
Qty.=50pc
$2/pc
100+ 100+ 100 100
StockA/C GR/IR VendorA/C
1/27/2012 38
Variances
Quantity
Date
Price
25
20
$20
$10
Dec22 Dec1
Invoice
Invoice
Invoice
GR
PO
PO
InvoiceReceipt
1/27/2012 39
Invoice Block
Quantity Variance Example
GoodsReceipt
GoodsReceipt
Qty.=50pc
InvoiceReceipt
Qty.=100pc
$2/pc
200+ 100+ 100 200
StockA/C GR/IR VendorA/C
1/27/2012 40
Invoice Block
Price Variance Example
Quantity: 50 = 50 = 50
Price: 50x2=100 <> 50x5=250
Error
InvoiceisBLOCKED forPayment
(PriceVariance)
1/27/2012 41
Automatic Release
100
GR
50
Ordered Delivered
Invoice
100
Vendor
IR>GR
InvoiceisBLOCKED
forPayment
2
nd
Delivery
IR
Automatic
Release
Paymentprogramcan
SettletheInvoice
GR
50
IR=GR
1/27/2012 42
Manual Release
BlockingReasons
Quantity
Price
Date
OrderPriceQuantity
Manual
Quality
Select
Release
Pay
1/27/2012 43
Subsequent Debit / Credit
1/27/2012 44
Credit Memos
CreditMemosareissuedwhengoodsarereturnedorapriceadjustmentisneeded
ReturnallGoods PriceAdjustment
CREDIT
25pcs@$2/pc.
25pcs@$2.10/pc
CREDIT

25pcs@$0.10/pc.
1/27/2012 45
Payments in the Procurement Cycle
MM
MM
MM
FI
Payment
LogisticsInvoiceReceipt
GoodsReceipt
PurchaseOrder
1/27/2012 46
Payment Processing
Vendor1 Vendor2 Vendor3
PaymentProgram
Check
BankTransfer
OR
1/27/2012 47
Payment Processing Results
PAYMENTPROGRAM
Createa
PaymentForm
CreateVendor
Payment
Document
ClearVendor
OpenItem
PosttoVendorAccount
PosttoG/LAccounts
1/27/2012 48
Account Assignment Category
StockMaterialwith
MaterialMaster
Record
AccountAssignment
AutomaticAccount
Assignmentfrom
MasterData
UpdateSTOCK
ACCOUNTattimeof
GoodsReceipt
ReceiveintoStock
ConsumableMaterial
(nonstock)
AccountAssignment
ManualAccount
Assignment User
entersAccountData
UpdateSTOCK
ACCOUNTattimeof
GoodsReceipt
EnterAccount
AssignmentCategory
1/27/2012 49
Account Assignment Categories
1/27/2012 50
Procurement Cycle
Account Assignment Category
Shopping
Cart
SRM
Purchase
Order
SRM
Goods
Receipt
ECC MM
Invoice
Receipt
ECC MM
Payment
FI/AP
GR
Vendor
Payment
1/27/2012 51
Summary
KeyTerms:
Procurement:
ProcurementCycle
MaterialsManagementDocument
ShoppingCart
PurchaseOrder
RequestforQuotation
Quotation
Contract
GoodsReceipt
LogisticsInvoiceVerification
Payment
AccountAssignmentCategory
1/27/2012 52
Summary
KeyTerms:
LogisticsInvoiceVerification
InvoiceVerification
GR/IRAccount
Variances
Price
Quantity
PaymentBlock
ReleaseBlock
SubsequentDebit/Credit
CreditMemo
Workshop Objectives
1/27/2012 53
DefinethefullProcurementCycleandrelatedactivities
DefineLogisticsInvoiceVerificationandrelatedactivities
Introducetermsassociatedwithprocurementandinvoice
verification
Questions
1/27/2012 54
Thank you!
1/27/2012 55


MAGI C Pr oj ec t
WORKSHOP MI NUTES/OUTPUT DOCUMENT



PROJECT IDENTIFICATION
Project Name CPI/Project Number
Project Type
(CBI, Implementation, CSS, Upgrade, Internal, other)
MAGIC Implementation
Customer Name Customer Number Planned Start/Finish
State of Mississippi 600260
SAP Customer Partner Project Sponsor Program Manager

SAP Project Director Customer Project Director Partner Project Manager
Bill Bevil Becky Thompson

GENERAL INFORMATION
Workshop Title PRO-37 w/FIN_AP_01 & PRO-28 Logistics Invoice Verification (LIV)
Workshop Facilitators J eanna Stafford, Zach Ang,
Scribe Aaron Stein

Name (including Role/Organization)
Tammy Rankin DFA/MMRS Linda Whitley MDE
Gail Gentry MDE Aaron Stein SAP
Carlos Galloway DFA/MMRS Terrance J ones DFA/MMRS
Shelley Walker DFA/MMRS Leah Chittom DFA/MMRS
Logan Litchliter DFA/MMRS Frances Davis DFA/MMRS
Margaret J ordan DFA/OFM Loretta Sebren DFA/OFM/BFC
Shauna White DFA/OFM/BFC Sharetha Batts DFA/MMRS
J im Hurst DFA/OFM Matilda Fleming MFC
J ennifer Tyler MSDOR Marsha Duncan DMG for MDOT
Chris Cavett MDHS Gia Allen Medicaid
Alison Brown MDOT Ben Cohen MDOT
Michelle Roberts MDOT Andy Day MDOT
Milo Crabtree DFA/OPTFM Ross Campbell DFA/OPTFM
Lance Fulcher DFA/OPTFM Kay Martin DFA/MMRS
Brenda Benson DFA/MMRS Teresa Hayes DFA/MMRS
Robbie Coleman DFA/MMRS Nancy J ennings DFA/MMRS



2



KEY DECISIONS ANSWERED REFERENCE DOCUMENTS
FOR DETAILS REFER TO THE FOLLOWING KEY
DECISION DOCUMENT
KD:Willthesystembeabletoallocatetheinvoicecoststovarious
accountinglineitems(e.g.costcenter,grantetc)?
Multiplewaystodoit,gobysequence,individuallineorbypercentageby
allthelinestodistribute

KD:ThereisnotanautomatedprocesstoconvertanonPOinvoicetoa
POLIVInvoice.(Thesuspensetabledoesnotautomaticallyconvertanon
POinvoicetoaPOLIVinvoice.Thesuspensetablejustallowsfora
preprocessingofthePaymodeinvoices.)


KD:ValidationwillbeperformedforspecificGLaccountstodetermine
whetherthereisaPOrequiredforit.Checkisdoneindirectinvoicing
(FV60).










ID GAPS IDENTIFIED OWNER DUE DATE
01 PaymodeEInvoiceProcessing:

Enhancement:PaymodeinvoicesthathaveaPOreferencewillbe
automaticallyprocessed.InvoiceswithoutaPOreference(direct
invoices)willhaveapreprocesswheretheMAGICuserwillindicate
thattheinvoiceisadirectinvoiceorassignthePOreference.Once
thisdeterminationisindicatedontheinvoice,theinvoicewillbe
processedasaDirectInvoice(noPOreference)orasaLIVinvoice
(withaPOreference).
Zach Ang TBD
02
03
04
05


ID ACTION/PARKING LOT ITEM OWNER DUE DATE
01 AI:ValidateifinvoiceswillbegoingintoRecordManagement.SRM
hasdeliveredintegrationwithRM.
J on Sanford
02 AI:Currentlyallpaymenttypesareassociatedwithonenumbering Zach Ang / 1-27-2012

3



range;inthefutureeachpaymentmethodwillbeassociated witha
differentnumberingrange.Willneedtovalidatethatthisworksfor
theSOM.
Nancy
J ennings



03 PL:Isinteragencybillinggoingtotakecareofthefundtofund
transferorisatruepaymentgoingtoberequired.Followupwiththe
CO.
Zach Ang /
J anice Begin
1-26-2012
04 AI:AtwhatpointwillwebeperformingtheCashAvailabilityCheck? Zach Ang /
Tom Mcdonald
1-26-2012
05 Zach Ang
06


07


08
09
10


ID ORG CHANGE MANAGEMENT (OCM) IMPACT IDENTIFIED CROSS TEAM IMPACT
01 GoodsReceiptinasystemprovidesa3waymatchingprocessandwill
beanewprocessforSOMAgencieswillnolongerbegoingto
Paymodetoprocesstheirinvoices.


02 Purchase Orders will be sent to Paymode as in the past; the PO will be
matched to the invoice upon submission by Paymode system or
manual assignment by the Vendor to the invoice. The invoice file will
be interfaced to the SAP system for processing. There will be two
invoice types in SAP; Direct Invoice (non-PO invoices) or LIV (PO
invoices). Direct Invoices will have verification pre-process before
being created in the SAP system.

03
04
05

ID MISC NOTES
01
02
03
04
05