Suppliers

Procure to Pay: Suppliers

Payment,
Sourcing Ordering
Analysis

RFQ, Supplier Requisition Purchase Receipt Invoice, Analysis,

Auction, selection orders & matching, manage
Quotation agreements payment suppliers

2
 Objectives

After completing this module, you should now be

able to do the following:
Define suppliers
Define supplier sites
Manage suppliers
Identify key reports
Understand setup options
Understand additional implementation
considerations

3
 Agenda

Understand suppliers role

Define supplier records
Manage suppliers
Identify key standard reports
Understand setup options
Discuss additional implementation considerations

4
 Overview of Suppliers
Import/Enter
Enter supplier invoice Validate invoice

Pay invoice

Match to PO

Create PO

Create accounting
entries
Enter requisition

5
 Purchasing Use of Supplier Information

Requisition RFQ Quotation

Supplier

Purchase
order Receipts Returns Payment

6
 Flow of Default Values
Procurement Flow Payables Flow
Financials options

Purchasing options/Receiving options/Payables options

Supplier

Supplier site

Item 2 Invoice
1
PO Documents Distribution Scheduled
line payment line
1 Takes precedence over 2

8
 Agenda

Describe overview of suppliers

Define suppliers
Manage suppliers
Identify key standard reports
Understand setup options
Discuss additional implementation considerations

9
 Supplier Record Structure

Supplier

Tokyo Paris New York

Purchasing site Purchasing site Pay site

Primary Pay

Sue Taylor, Bill Wilson, Liz Miller, Aaron Carr,

Sales Mgr Sales Quotes Sales Rep AR Mgr

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 Entering Standard Supplier
Basic Information

ORACLE

Organization Name Stevens and Co

Alias
Name Pronunciation
D-U-N-S Number
URL http://stevens.com
Context Value
Country of Origin United States
Tax Registration
Number FEIN 52-1234567
Taxpayer ID

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 Supplier Company Profile

ORACLE
Company Profile
Organization
Tax Details
Address Book
Contact Directory
Business Classification
Products & Services
Banking Details
Surveys

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 Supplier Profile - Organization

Parent Supplier Name Parent

Must already be defined to
select
Child Child
Customer Number

Your Company Your Supplier

Cust.
#9924

Organization Type

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 Supplier Profile Address Book
Supplier Sites

Address Details: Contact Details:

Country Phone Number
Address information Email
Address name Purpose

Tokyo Paris New York

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 Supplier Profile Contact Directory

Last Name
First Name
Title
Email Address
Liz Miller Phone Number
Sales Representative Fax Number

15
 Supplier Profile Business Classification

Minority-Owned

Woman Owned Small Business

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 Supplier Profile - Banking Details

Bank
Bank Branch
Bank Account

Operating Account
#432198-77

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 Supplier Terms and Control

ORACLE
Terms and Control
Accounting
Tax and Reporting
Purchasing
Receiving
Payment Details
Invoice Details

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 Supplier Profile - Accounting

Ledger
GL Default Accounts
Liability
Prepayments
Bills Payable
Distribution Set

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 Supplier Profile - Tax and Reporting

Reporting Name
Transaction Tax
Tax Applicability
Tax Reporting Codes
Supplier Sites
Self assessment taxes
Transaction value-added tax (VAT)

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 Supplier Profile - Purchasing

Supplier:
Supplier Hold
Create Debit Memo from RTS Transaction
Supplier Site:
Purchasing
Ship-To Location
Bill-To Location
Ship Via
Self-Billing
Freight
FOB
Terms

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 Supplier Profile - Receiving

Enforce Ship-To Location

Receipt Routing
Match Approval Level
Quantity Received Tolerance
Quantity Received Exception
Days Early/Late Receipt Allowed
Receipt Date Exception
Allow Substitute Receipts
Allow Unordered Receipts

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 Supplier Profile Payment Details

Information about how you pay the supplier such

as:
Payment Method
Payment Attributes
Delivery Attributes
Specifications
Remittance Advice Delivery

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 Supplier Profile Invoice Details

Invoice Details Payment Terms

Hold from Payment Priority
Terms
Pay Date Basis
Pay Group
Always Take Discount
Exclude Freight From
Discount
Create Interest Invoice

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 Suppliers Quick Update Page

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 Supplier Level Versus Site Level Entry

Tabbed Region Supplier Level Site Level

Organization Yes No
Tax Details Yes Yes
Address Book No Yes
Contact Directory Yes No
Business Classification Yes No
Products and Services Yes No
Bank Details Yes Yes
Surveys Yes No
Accounting No Yes
Tax and Reporting Yes Yes
Purchasing Yes Yes
Receiving Yes No
Payment Details Yes No
Invoice Details Yes Yes

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 Agenda

Describe overview of suppliers

Define suppliers
Manage suppliers
Identify key standard reports
Understand setup options
Discuss additional implementation considerations

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 Maintaining Supplier and Supplier Site
Information

Changed values default only to new documents that you

subsequently create
Where to make the change?

Net 30
Supplier 2/10, Net 30

Existing Site A Existing Site B New Site C

Net 30 Net 30 2/10, Net 30

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 Avoiding Duplicate Suppliers

Before setting up a new supplier, verify it doesnt already

exist.
System requires unique supplier names. Relies heavily on
strong naming conventions.
Benefits of avoiding duplicate supplier entry

Example #1 Example #2

XYZ Inc. XYZ Inc The Sun Sun Inc Sun Co

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 Merging Suppliers

Run supplier Identify duplicate ABC ABC

audit report suppliers Corporation Corp

Merge suppliers

Maintain audit Review merge ABC

trail results Corporation

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 Data Example - Supplier Merge

Oracle Corporation Oracle Corp

Target/Correct Incorrect
Supplier Supplier

Site Names Site Names

merge
CA-REDWOOD CA-REDWOOD
IL-CHICAGO copy FL-ORLANDO
VA-RESTON
FL-ORLANDO

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 Merging Suppliers Reports

After you have merged suppliers, Payables automatically

prints the following reports:
Purchase Order Header Updates Report
Supplier Merge Report

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 Agenda

Describe overview of suppliers

Define suppliers
Manage suppliers
Identify key standard reports
Understand setup options
Discuss additional implementation considerations

33
 Supplier Reports

Suppliers Report
Supplier Audit Report
Supplier Payment History
Supplier Paid Invoice History
Supplier Mailing Labels
Purchase Order Header Updates Report
Supplier Merge Report

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 Supplier Reports

Supplier Open Balance Letter

Invalid PO Supplier Notice
Accounts Payable Trial Balance Report
Invoice Aging Report
Open Items Revaluation Report

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 Agenda

Describe overview of suppliers

Define suppliers
Manage suppliers
Identify key standard reports
Understand setup options
Discuss additional implementation considerations

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 Financials Options: Supplier-Purchasing

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 Financials Options: Human Resources

Human Resources

Expense
Reimbursement
Address

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 Supplier Lookup Codes

VENDOR TYPE
MINORITY GROUP
PAY GROUP
FREIGHT TERMS
SHIP_VIA
FOB

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 Profile Options

PO: Secondary E-mail Address

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 Agenda

Describe overview of suppliers

Define suppliers
Manage suppliers
Identify key standard reports
Understand setup options
Discuss additional implementation considerations

41
 Responsibility for Supplier Entry/Maintenance

Assign responsibility for supplier entry/maintenance

Number of staff required
Consider good internal control and segregation
of duties

2 Payables Clerks 1 PO Clerk

Create/adjust Add purchasing

suppliers contacts

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 Supplier Naming Conventions

Benefits
Prevent duplicate invoices and payments
Improve system performance and supplier
inquiries
Provide accurate supplier reporting
Who should develop the naming conventions?
Document with sign-off by authorized approver(s)

Purchasing Payables Assets Others

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 Supplier Naming Convention Examples

Examples
Exact spelling decided for easily
misspelled suppliers
Exact spelling for top ten priority suppliers
Determine use of case (CAPS, Title Case)
List approved abbreviations
Determine use of punctuation and
special characters
Site name structure
Address format

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 Supplier Numbering Options

Two choices
Automatic (numbers only)
Manual (alphanumeric or numeric)
Switch from manual to automatic
Ensure that Next Automatic Number is larger
than the largest number assigned

Automatic Manual
2114 EE103
2115 GV104
2116 ST105
2117 ST106

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 Supplier Conversion Methodology

Currently no open interface for conversion

of suppliers
Determine conversion method
Determine which suppliers to convert
Determine data cleanup requirements
Determine conversion reconciliation method

Automated
I.B.M. IBM IBM
Interface
Manual Entry

Tile Company Tile Co

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 Setup of Fax or E-Mail

Options for communicating approved purchasing

documents to suppliers:

Printed Document Facsimile E-Mail

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 iSupplier Portal: Supplier Self-Service

Your Supplier Self Registration Suppliers

Company
Supplier User Registration

Supplier Profile Details

Address/Contact Info

Banking Details

Business Classifications

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 Summary

In this module, you should have learned how to:

Define suppliers
Define supplier sites
Identify key reports
Understand setup options
Discuss additional implementation considerations

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