89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Presented by: Ann C. Crislip & Craig A. McIntosh Rensselaer Polytechnic Institute

89th Annual Meeting & ExpositionMarch 21 – 24, 2010Denver, Colorado

Presented by: Ann C. Crislip &

Craig A. McIntosh

Rensselaer Polytechnic Institute

Tuesday March 23, 2010

Completing the Procurement Cycle

Electronic Settlement - E-Invoicing


Background

Challenges and objectives that drove e-Invoicing

Collaboration of vendors and clients

e-Invoicing development

Review functionality

Review key controls

Benefits of e-invoicing

Review of technology

Demonstration of life before and after e-Invoicing

Agenda


Banner since 1992

A/P is centralized

A/P -- Finance Division• 2 staff members and 1 manager• 43,000 total invoices annually

Average 154/day• 9,000 invoices against PO’s annually

Average 25/day

Background


E-Procurement Implementation

2000 Selected SciQuest/Higher MarketsModules:– Spend Director (private shopping environment)– Requisition Manager– Order Manager– Settlement Manager

2001 Phase 1 Rollout– Spend Director – Punch-out catalogs for key spend areas

2005 Phase 2 Rollout– Non-Catalog Requisitions– Integration with ERP financial system

2009 Phase 3 Rollout– Settlement Manager


Challenges Manual Process

Delays in processing receiving Delays in payments to vendors

Working in 2 Systems - Banner and SciQuest• PO in SciQuest – Invoice in Banner

Inability for campus to review actual invoice

3-Way Matching in Banner

Duplicate Data Entry for Receiving

We needed a sophisticated solution!


Objectives

Change The Process ! ! !

Provide better information to campus • Put the invoice in the hands of the campus purchaser• Provide on-line source document – invoice

Reduce the number of steps involved in making payments

Eliminate duplicate effort

Maintain key controls

How were we going to accomplish our objectives?


Collaboration

The E-Invoicing Solution Was Born


How Did We Get Here?

Envisioning of Solution

• In 2007 discussions began between SciQuest, SunGard and customers about integrating invoices

• In January 2008 the integration approach and scope was finalized

• 4 Pilot customers by March 2008

• Design Complete – August 2008

• Customers Live• February 2009 – Virginia

Polytechnic Institute • April 2009 – Rensselaer

Polytechnic Institute• June 2009 – East

Tennessee State University• November 2009 – Texas

Tech University

• In Process Projects• UNC System• East Carolina University• Miami University• University of Illinois

• Continue to evaluate improvement opportunities

Pilot Project Deployment to Customers


Flexibility


Process

Rensselaer Method

Campus Enters into SciQuest using Settlement Manager

Invoice comes in mail

to campusor via email

A/P Opens Invoice in SciQuest

A/P Opens Invoice in Banner

Assigned Banner Document Number

Dual Monitors on

the A/P desks


A/P Verification• SciQuest • Banner

Banner Document #

Open Attachment – Invoice – for Verification


A/P Folders

You can determine folders that work for your business processes.

Urgent Invoices

Non-Urgent Invoices

Exceptions

Invoice Sent to Purchasing Agent

Invoice Returned from Purchasing Agent


Fields that Rensselaer has chosen to hide so campus users cannot change them• The FOAPAL• Addresses• Payment Due Date

Supplier Invoice Numbers cannot be duplicated

Urgent, Partial, Final indicator

Invoices are fed from SciQuest into Banner. An invoice submitted is subject to all Banner business rules and edits as though the invoice had been entered directly into Banner

Key Controls


Key Controls (continued)

The invoice is created in Banner as INCOMPLETE

A/P has to verify, make necessary changes and then complete the invoice in Banner

A/P then APPROVES the invoice in SciQuest

If the invoice fails any Banner business rules the invoice will not be created in Banner and an error message is sent to designated central office personnel


A/P has the ability to correct an invoice or ‘reject’ with a comment• Requisition routes back to the originator• Invoice amount credits back to the original PO

If A/P corrects the invoice it re-queues the document for submission to Banner

The originator will receive an e-mail with a link directly to the invoice

Invoice Exceptions


Process

Virginia Techand

Texas Tech Method

Feeds into Banner

Invoice electronically transmitted directly

from vendor


East Tennessee State University• A/P processes invoices in SciQuest• Campus completes receiving• 3-way match in Banner• Accepting cXML invoices electronically from 3 vendors

A combination of RPI, Virginia Tech and Texas Tech’s methods

Process


Managing Dates

In Banner there are 3 required dates to process an invoice• Invoice Date• Payment Due Date• Transaction Date


Configuration

SciQuest Has Three Configuration Options

1) If any of the dates are missing the invoice will not be sent to Banner and it will reject

2) If any of the dates are missing the system will insert the system date and

send to Banner 3) If there is an invoice date and transaction date but payment due date is

missing then the logic to derive the payment due date from the Banner vendor master payment terms will be applied


• Pros for Rensselaer– Receiving eliminated– The 3-way match was eliminated– The invoice in SciQuest is fed into Banner in real-time– Invoices will be visible to campus and purchasing– Eliminates campus guesswork– Reduced processing time– Eliminates A/P filing and document management– Eliminates lost invoices– Faster document retrieval for audits and other requests– Invoice history in SciQuest provides good information to campus– History provides workflow data such as who and when an invoice was

submitted– Overall reduction in paperwork

• Cons for Rensselaer– Campus may not have equipment to scan invoices

Pros and Cons


• Eliminate receiving• Automate the PO invoicing process• Reduce processing time• Reduce settlement errors• Reduce the cost of payables processing• Enhance critical controls• Eliminate the need to work in two systems• Electronic invoice filing

What Can It Do For You?


• Non-PO Invoices are entered by campus into SciQuest and A/P manually enters them into Banner

• Next phase is to work with SciQuest and SunGard to build the interface for Non-PO Invoices

Non-PO Invoices


Technology ConsiderationsHardware and software components to support messagingBetween systems Sungard

– Integration for e-Procurement (formally known as LDI) v 1.3.2 (now v8.0.0.2)– Web Services – e-Invoicing v 7.3.0.4 (now v8.3)– Finance v 7.3 (now v8.3)– General v 7.4 (now v8.2)

SciQuest– Invoice Adapter

Rensselaer– SSL Certificate

Inserting technology into the process helps ensure compliance with internalcontrols – Custom Workflows– Approvals


• Standard adapters for Banner Finance co-developed by SciQuest and SunGard

• Standard Integrations: Integration for e-Procurement– Single Sign-On: Luminus or LDAP– Budget Authorization– Purchase Order– Synchronizations: Supplier, FOAPAL, Commodity, Address

• Invoice adapter and web services• Hardware and middleware software installed at customer site

SciQuest for Banner Finance

Firewall

BannerFinance

SciQuest

Integration For

eProcurement

Invoice Web ServicesInvoice

Adapter


Ban

ner

Sci

Que

st

LoginVia SingleSign-On

CreateReq.

EH&SApprovals

FinancialApprovals

Approvals PO Pymt

HostedCatalogs

PunchoutCatalogs

Create &Transmit to

Supplier

CustomApprovals

CreatePO

Encumber Funds

PO & Inv(2 Way Match)

Budget Check

Invoices

Flip to eInvoice or Enter Inv.

Invoice

PO & Inv(2 Way Match)

LDI

or

Web

S

ervi

ce

Synchonizations:FOAPAL, Ship-to,

Vendor, Commodity

Adapter

Banner Web

Service

LDI LDI

API

LDI

Check

API

Requisition – PO – Invoice Flow - RPI


Summary


Ann C. CrislipCraig A. McIntosh

Rensselaer Polytechnic Institute

Thank You!

Documents

89 th Annual Meeting & Exposition March 21 – 24, 2010 Denver, Colorado Presented by: Ann C. Crislip & Craig A. McIntosh Rensselaer Polytechnic Institute