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Manage Accounts Payable

The document describes the procure to pay process for invoices at AMS. It involves multiple steps: 1) vendors submit invoices through WBSCM including required documentation; 2) AMS runs an invoice report and specialists evaluate invoices; 3) specialists determine if necessary documentation is present to approve the invoice. 4) If approved, invoices are sent for payment and then closed out through contract closeout. The process aims to ensure proper payment to vendors but has several pain points around documentation requirements and balancing workload.

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91 views

Manage Accounts Payable

The document describes the procure to pay process for invoices at AMS. It involves multiple steps: 1) vendors submit invoices through WBSCM including required documentation; 2) AMS runs an invoice report and specialists evaluate invoices; 3) specialists determine if necessary documentation is present to approve the invoice. 4) If approved, invoices are sent for payment and then closed out through contract closeout. The process aims to ensure proper payment to vendors but has several pain points around documentation requirements and balancing workload.

Uploaded by

rajaavv
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Procure to Pay (4.4 & 4.

5) As-Is Process Flow and Narrative

4.5.1 Create & Submit Invoice in WBSCM


• In addition to following SAP invoicing process, vendor must attach COL
o BOL and Proof of Delivery are optional
o Group B: Either BOL, Proof of Delivery, or Contractor’s Invoice Certification must be
attached
• Opportunity
o Not using reasons for movement in SAP – can use to differentiate problems from data
entry errors

4.5.2 AMS Runs Invoice Report


• Queue generated based on payment due date
o Takes into account both FIFO and prompt payment terms
• Can receive up to 300 invoices in a day
o There may be up to 3500 invoices in the queue at any given point
• Pain Point
o Because of large number of invoices, this report can take a long time
o Workload and balancing issue

4.5.3 Invoice is assigned to Specialist


• AMS Procurement specialists evaluate the invoice to determine if it will be approved
Procure to Pay (4.4 & 4.5) As-Is Process Flow and Narrative

4.5.4 Decision: GR Present?


• Check to see if the recipient uploaded the GR, as they are supposed to
• If yes, skip to 4.5.9
• If no, proceed to 4.5.5

4.5.5 Decision: Proof of Delivery (POD) or BOL present?


• In order for the invoice to be processed, either the GR, POD, or BOL must be present when the
invoice is submitted
• If yes, skip to 4.5.8
• If no, proceed to 4.5.6

4.5.6 Reject Invoice


• Specialist rejects the invoice in WBSCM, if both GR and POD are missing
• Pain Point
o If one line is rejected, the entire invoice is rejected
• If invoice was rejected mistakenly, AMS can re-create the invoice

4.5.7 Instruct Vendor on Necessary Changes


• Provide guidance for vendor to submit an invoice that will be approved
• Usually involves providing necessary documentation
• Pain Point
o Vendor must create a new invoice number
o Invoice goes back to the end of the queue
 Prompt payment terms are based on the date of a correctly submitted invoice

4.5.8 AMS Creates GR


• If GR is missing, but BOL or POD is present, AMS can create the GR on the recipient’s behalf
• Must wait 48 hours

4.5.9 Decision: 3-way Match?


• If yes, skip to 4.5.11
• If no, proceed to 4.5.10

4.5.10 Edit GR
• Usually changed to either:
o Match PO date
o Match BOL or POD quantity

4.5.11 Approve Invoice


• Procurement specialist approves the invoice so that it can be sent for payment
• Approval is at header level, not line item

4.5.12 Invoice Sent to FSA Finance Team


• AMS is not involved in the actual payment of the invoice
Procure to Pay (4.4 & 4.5) As-Is Process Flow and Narrative

• Approved invoices are sent to the FSA Finance team, who processes and pays the invoice
• If the vendor has debt elsewhere within the government, funds may be subtracted from
payment of the invoice

4.5.13 Issues with Payment?


• AMS only gets involved when there are issues processing the payment
• If yes, proceed to 4.5.14
• If no, skip to 4.5.15

4.5.14 Issues Communicated to AMS for Resolution


• Vendor will reach out to AMS if there are issues, usually for late payment
• AMS works with FSA finance team to resolve the issue

4.5.15 Vendors paid in NPS


• Invoices are paid in order of due date
• FAR Requirement: SAM must be up to date in order to enter GR and to pay vendors
o Pain Point: SAM information can expire between award and invoice, causing invoices to
get stuck in WBSCM
 Can cause interest to accrue

4.5.16 Decision: Debit/Credit Request


• After payment is received, the vendor may request either a debit or credit if it believes the
payment was incorrect
• If no debit or credit is requested, proceed to 4.5.17
• If debit, skip to 4.5.18
• If credit, skip to 4.5.21

4.5.17 Decision: Remaining PO Balance?


• If there is a remaining balance on the PO after payment, the PO will need to be closed out
• If the PO is paid in full, it is automatically closed out in SAP
o FAR requires additional action to close out the contract
• If yes, proceed to Contract Closeout
• If no, process ends

4.5.18 Review Debit Request & Documents


• Specialist researches mistake, authorizes additional payment if necessary

4.5.19 Request Submitted to WBSCM Contractor


• Debit must go through the contractor, who approves and sends it to FSA Finance team for
payment
• Credits/claims are worked directly through FSA Finance team

4.5.20 Credit Request Sent AMS Credit Request Rep


• Standard form is completed
Procure to Pay (4.4 & 4.5) As-Is Process Flow and Narrative

4.5.21 Request Processed


• Credit Request Rep processes all credits
• Specialists have very little visibility to the process
• After processing, rep sends request to FSA Finance team for payment

4.5.22 Contract Closeout


• Contract is closed and funds are released

4.5.22.1 Past Performance Review in CPARS


• Gap: Not currently being performed in DC office, rarely in KC office (FAR Requirement)

4.5.22.2 WBSCM Closeout Report


• Report tells AMS if there is any quantity remaining either to be delivered or invoiced

4.5.22.3 Decision: Quantity Remaining?


• If yes, proceed to 4.5.22.4
• If no, skip to 4.5.22.6; considered “Perfect PO”

4.5.22.4 Further Research


• Is quantity remaining to be delivered or invoiced?

4.5.22.5 Document Situation on PO


• Header text notes explaining what quantity is remaining
Procure to Pay (4.4 & 4.5) As-Is Process Flow and Narrative

• Pain Points
o GR and Invoice not matching
 Example
• GR received in full, but Proof of Delivery shows 10 cases damaged
• Invoice reflects 10 cases short, as a result does not match GR
 Vendor may forget to invoice

4.5.22.6 Contract Closeout Statement


• Letter to vendor notifying them of the closeout
• Includes the following reports:
o Last invoice number and date
o Last modification
o Excess Funds
o Vendor Name and address
• IDIQ
o Must make sure all individual PO’s are closed out

4.5.22.7 Decision: Sign-off?


• The following parties must sign off on the Contract Closeout Statement
o CO
o Procurement Specialist
o Financial Analyst

4.5.22.8 Update Individual PO’s in WBSCM


• Add notes in Header Text
• Update status as “closed out”

4.5.22.9 CO Approves
• Opportunity: Use Doc Approval in SAP instead of sign-off via email

4.5.22.10 Save Contract Closeout Statement in Records Management

4.5.22.11 Contact WBSCM Contractor


• Notify contractor of which PO’s have been closed

4.5.22.12 GR/IR Clearing (if necessary)


• Performed by WBSCM contractor
• Clears remaining quantities on GR and or invoice
• Not performed for “Perfect PO’s”

4.5.22.13 Funds Released


• Funds only returned to USDA budget if PO is closed out in current fiscal year
o Otherwise, funds are returned to the Treasury
• Entitlement funds are not affected; only attached to SO, not PO

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