course number: v003

Course Number:V003

INVOICING PLANINVOICING PLAN

Monthly Payment PlanMonthly Payment Plan

Invoicing Plan Overview

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• Invoicing Plan (or “Periodic Inv. Plan”) is a type of Purchase Order created in SAP R/3

– Use of this transaction type on a PO will generate automatic, routine payments to the vendor at regular intervals, such as for real estate or equipment leases

• The Contracts that these PO’s are referenced against are also created in SAP R/3

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• There are several Commonwealth-wide Contracts set up in SAP R/3 for use with Invoicing Plan, but this course will only cover Purchase Orders specific to:

– 4600013235, IKON Business Solutions Multi-Functional Devices, Lot 3 only (copier lease)

• All agencies are now required to use Invoicing Plan when creating Purchase Orders that reference this Contract

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• Use of Invoicing Plan is extremely beneficial to both the Commonwealth and the Vendor

– The Vendor will always be paid in a timely manner per the Purchase Order payment terms set up by the Commonwealth

– Manual input and processing of invoices by Comptroller’s will be eliminated

– Agency input of goods receipts against the Purchase Order will be eliminated

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• Additional benefits to the agencies are:

– Reduced blocked invoices due to quantity (i.e., no GR entered)

– Commitments and expenditures can now be tracked in Procurement via Business Warehouse

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• There are minor differences between Invoicing Plan and a standard PO:

– Per. Invoicing Plan (IP) must be chosen for the purchase order type instead of standard PO

– The PO validity dates must be populated in the Additional data tab on the header section, and can be started on the current or a future date

– The Goods Receipt box in the Delivery tab must be de-selected

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• Minor differences, continued:

– The Invoice Reference Field within the Customer Data tab must be populated with a payment identifier

– The Tax Code box within the Invoice tab must contain “I0” (Capital letter I and a zero)

– The Invoicing Plan within the Invoice tab must be initiated

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• Similarities between Invoicing Plan and a Standard PO remain:

– All required approvals must be executed before the Invoicing Plan can be sent to the vendor

– The Invoicing Plan requires account assignment and text(s) information be entered

– The Invoicing Plan is encumbered for the total dollar amount of the purchase order

– The length of each Invoicing Plan is one year

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Invoicing Plan Vendors

• The vendor master record is set up slightly different if it refers to an invoicing plan vendor:

― Vendor needs to be an ERS Vendor

― “GR-based IV” box needs to be de-selected

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Contracts related to Invoicing Plan• The contract

header data is set up slightly different if Invoicing Plan PO’s will be issued against it:

― Payment terms must be “P021” rather than “P001” (Net 30), for example

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Contracts related to Invoicing Plan• The line item data

would also be set up slightly different within the GR/IR control area: ― Tax code must

be set to “I0”, not blank

― The boxes next to GR, IR, GR-basedIV, and ERS must be checked

Create Invoicing PlanPart 1, Creating and

Issuing the PO

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Create Invoicing Plan(Header Level)

1. Select Periodic Inv. Plan document type from the drop-down menu

2. Enter the Vendor Number (note that the vendor has already been set up as an “ERS” vendor by IES)

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• Upon the entry, you will be prompted to choose 1) an Ordering Address first, and 2) Invoice Presented by

– The Ordering Address (OA) defaults to 116604-001

Accept the default by pressing the Enter key or selecting

Choose an alternate OA by placing the cursor on the appropriate number and Enter

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• The Invoice Presented by defaults correctly to 116604-901 and should NOT be changed

Accept this number by pressing the Enter key or selecting

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3. On the (Header) Texts tab, enter information within the applicable text areas


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• Header texts are used to store information on a purchase order that will be applicable to all line items contained on the purchase order. – Header Text: Enter any special instructions and conditions

required of the vendor. This text will be printed out on the purchase order that will be sent to the vendor.

– Encumbrance Information Text: Enter the justification of the purchase and any special notes for internal use. This text will not print out on the purchase order that will be sent to the vendor.

Example “Justification: Copier will be used for reproduction of materials in the Analysis Division”

Purchase Order Header Texts


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– Shipping Instructions: Enter any specific shipping instructions to vendor that relate to all items on the purchase order. This text will always copy from the contract. This text will be printed out in the purchase order that will be sent to the vendor.

Example “Deliver between the hours of 8:30 am and 3:30 pm, Monday through Friday, except State holidays. All deliveries to 333 Market Street must register at the security desk in the main lobby level.”


Purchase Order Header Texts (cont’d)

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4. On the Additional data tab, populate the validity date fields with a start and end for the plan period

• Note: The validity start and end dates are being used as start and end dates for the plan, and are not to be confused with the validity dates in a statewide or agency- wide outline agreement


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• The Validity start date on the PO should always be the first day of the month after the copier is (or will be) received– Examples


Copier received on: Validity start:

May 5, 2009 June 1, 2009

July 15, 2009 August 1, 2009

August 1, 2009 September 1, 2009

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• The Validity end date on the copier PO may not extend beyond June 30th – the end of every fiscal year– Examples:


May 1, 2009 through June 30, 2009

July 1, 2009 through June 30, 2010

July 1, 2010 through June 30, 2011

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• When Federal funds are used, additional rules related to the Validity end date on the copier PO will apply

• The PO also may not extend beyond September 30th – the end of the Federal fiscal year

– Examples:


May 1, 2009 through June 30, 2009

July 1, 2009 through September 30, 2009

Special note regarding Purchase Orders where Federal funds are used

October 1, 2009 through June 30, 2010

July 1, 2010 through September 30, 2010

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5. Complete the Org. data header data tab, entering your Purchasing org. and Purchasing group


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Important: When creating the PO, do not insert any data into the Invoice Reference field within the Customer data tab

This step will be completed as a “change” after the copier is delivered

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Create Invoicing Plan(Line Item Level)

6. Enter line item information, beginning with the Outline agreement field:

a. Outline Agreement = 4600013235

b. Agreement Item = [applicable contract line item]

c. Select the ENTER icon to pull the contract item details into the Purchase Order

• Note: Scroll to the right to access the Outline agreement field

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6. (cont’d)

d. PO quantity = 1 * *Limit of one copier base unit per Purchase Order

e. Account assignment category = [applicable selection]

f. Allow remaining default line item information to remain

Repeat step 6, as necessary, until all line items (optional accessories) have been entered

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7. Enter account code information on the Account assignment tab

Note: To distribute costs among multiple account assignments, please reference the instructional document “IP with Multiple Account Assignment”

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8. On the Delivery tab, remove the checkmark from the Goods Receipt box

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9. On the Invoice tab, ensure that the GR-based IV box is unchecked

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10. Continuing on the Invoice tab, start the invoicing plan by selecting the Invoicing Plan button

11. In the Specify Invoicing Plan box, select MFD Lease from the drop-down menu

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12. Based upon the Invoicing Plan type that was chosen, payment dates and amounts are automatically populated between the validity start and end dates

• Note: This screen is for viewing only – do not change any of the defaulted information

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• Notice the invoicing schedule is for 4 payments of $159.60 – one each month beginning on 3/31/2009 and ending on 6/30/2009

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13. Select the CHECK icon to see if the PO contains errors


14. At the message prompt, hold the PO by selecting the Hold button

15. Save the PO by selecting the SAVE icon

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• Attachments can be added to orders via the change purchase order transaction (ME22N)

• Most document types can be added to a purchase order, such as Word, Excel, PowerPoint, and Adobe Acrobat

• Where applicable, reference the following 6-step process for adding an attachment

Adding Attachments to the PO


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1. Select the drop-down menu in the Services for Object icona. Select Create

b. Select Create attachment


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2. Select (highlight) the applicable document from default directory folder

3. Select the OPEN button


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4. Continue the process until all attachments have been added

5. Select (either) “X” to exit Services for Object

6. Re-save the PO by selecting the SAVE icon

7. Upon approval, issue the PO to Ikon to order your copier


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Create Invoicing Plan

• As noted in step 4, the validity periods for each Purchase Order are specifically defined

• As noted in step 6.d., each Purchase Order has a limit of one copier (MFD) base unit

– Therefore, continue creating and issuing additional Purchase Orders, as necessary, for each copier needed and the subsequent validity periods

– See next slide for examples

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• The Purchaser needs to lease three copiers for their office through 4/29/2010 (the end of the MFD lease contract)

Copier #1 6/1/2008 to 6/30/2008 PO 4500700001

7/1/2008 to 6/30/2009 PO 4500700002

7/1/2009 to 4/29/2010 PO 4500700003

Copier #2 6/1/2008 to 6/30/2008 PO 4500700004

7/1/2008 to 6/30/2009 PO 4500700005

7/1/2009 to 4/29/2010 PO 4500700006

Copier #3 6/1/2008 to 6/30/2008 PO 4500700007

7/1/2008 to 6/30/2009 PO 4500700008

7/1/2009 to 4/29/2010 PO 4500700009

Create Invoicing PlanPart 2, Commencing

Payments

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• The steps outlined on the following slides should be completed for each Purchase Order

– See examples on slide following Step 3

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1. Using ME22N to change the PO, insert the Serial number for your newly delivered copier into the Invoice Reference field within the Customer data tab

Do not use any spaces or special characters such as #, $, @, etc.

• Note: Locate your Ikon/Richo copier machine serial number by pressing the User Tool/Counter button on the machine control panel. Next, press the Inquiry Button. The copier machine serial number will be posted under Serial Number of Machine header.

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2. Select the Delivery complete check-box within the Delivery tab

• Note: The Invoicing Plan is triggered by the start date in the Invoicing Plan box, as well as the selection of the Delivery completed box in the Delivery tab.

3. Re-save the PO by selecting the SAVE icon

Repeat step 2, as necessary, for all line items

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• Using our previous example, serial numbers would be inserted for:– Copier #1 into PO 4500700001, 002, and 003

– Copier #2 into PO 4500700004, 005, and 006

– Copier #3 into PO 4500700007, 008, and 009

• The Delivery Completed checkboxes should be selected for all PO’s, including those for future fiscal years

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Common Error Message and Resolution(Please hold, then save, if a new IP PO)

An “endless loop” occurs when trying to save the document that SAP considers faulty

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1. In the error message box, review any additional warnings to understand the “hard stop” error

Common Error Message and Resolution(Please hold, then save, if a new IP PO)

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2. In this example, the start date reflects the previous month (01/01/2009) instead of the current (02/__/2009) or a future date

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3. As per the error message long text, go to line item’s Delivery tab and de-select the Delivery complete box

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4. Continuing to correct the error, enter the current date * (02/06/2009) into the Validity start field, and it will default into the Invoice Plan on the line item’s Invoice tab

* Or, alternately, a future date

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5. Select the SAVE icon to save the changes to the Delivery complete and Validity start date fields

• Note that the error has been resolved because the start date is equal to the present date (or, alternately, a future date)

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6. Return to the Delivery tab and re-select the Delivery complete check-box

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7. Select the SAVE icon again to save the update made to the Delivery complete field

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• To review encumbrance information for the PO, select the AC Commitment Documents from the Environment dropdown menu

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• Individual payment amounts are shown for each of the invoice dates within the plan

Change Invoicing Plan

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• Important: If any issues arise with MFD’s leased through contract 4600013235, contact Ray Jaime ([email protected], 717-346-3827) with the Bureau of Procurement in DGS

– Ray will work with Ikon to resolve these issues

– DO NOT suspend or discontinue payment on your Purchase Order(s)!


Suspend or Discontinue Payments

mailto:[email protected]

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• The steps involved in changing a periodic invoicing plan Purchase Order will vary depending on the change(s) being made: – Examples – Delivery complete checkbox wasn’t marked

for all line items in the PO; delivery complete checkbox wasn’t marked for any line items in the PO; changing the remit-to vendor number; etc.

• Refer to the Procurement Training webpage at www.dgs.state.pa.us/procurement for End User Procedures specific to the above-mentioned changes


http://www.dgs.state.pa.us/procurement

Invoicing Plan Payment Process

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ZMRIS

• The Invoicing Plan payments will process when the nightly ZMRIS transaction is run by IES

• The ZMRIS transaction requires two conditions be met in order for a payment to process:

– The invoice date in the invoicing plan must be current or in the past if the initial invoice has not yet been processed

– The Delivery complete box within the line item’s Delivery tab must be selected

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Display Invoice Payment

• The line item’s Purchase order history tab shows that payments have processed on 01/01/2009 and 02/02/2009

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• Select the invoice document number link to display payment details

– On the Basic Data tab, fields such as Reference and Text are populated with meaningful information about the PO item and the payment


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– On the Payment tab, information related to payment status and dates is displayed


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– On the Note tab, information for remittance advice has been populated to meet Treasury requirements


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• Grouped payments occur when an Invoicing Plan has been stopped, then started again

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• Locate vendor payment details by selecting Follow-On Documents button

– In the List of documents in Accounting box, select the Accounting Document object type (by double-clicking)


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– Continue drilling into the payment details until the Outgoing payment information is reached


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Display Purchasing Documents (ME2N)

• To generate a list of purchasing documents within a specific document type, key-in transaction ME2N in the transaction field and select the ENTER icon

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• Complete the desired selection criteria fields and select the EXECUTE icon– Enter data in fields

Document type, Purchasing group, and Plant to filter results for specific criteria

– Note that the Document type for the Periodic Invoicing Plan is IP, and the Scope of list defaults to BEST


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• Results display showing a variety of information such as the PO number, Vendor, Contract number, Short text, and status of amount/percentage Still to be invoiced


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• In the above example, the status of this PO (and all line items) is Still to be invoiced 100% – i.e., the validity start date on the Invoicing Plan has not yet arrived


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• Here, the status of the PO is Still to be invoiced 71.43% – i.e., about 1/4th of the payments on the Invoicing Plan are complete

– To view details of the Purchase Order and of the Invoice payments, double-click on the PO number


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• The Net price for the line item ($367.08) equals the payment amount on each invoice

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• To view a summary of payments to date, place the cursor on the applicable line item and select the PO History button


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– The invoice history for the selected line item is displayed

course number: v003

Documents

invoicing plan overviewthere

invoicing plan pos

invoicing plan ip

type of purchase order

purchase order type

purchase order payment

standard po

invoice tab