Objective and Scope

This procedure aims at referring the internal controls to be delivered by  Procure-to-Pay (PtP), in which frequency; with whom it should be shared and the expected actions from them; and how to record evidence.

It applies for PtP process Worldwide. Any specificity required at regional level, if and whenever applicable, has a chapter inside this procedure.

Any other complementary documentation (including translated versions) related to this matter must always refer to this procedure.

Definitions

AP - Accounts Payable

Cockpit - SAP transaction that PtP uses to process invoices. It is the same as Process Director

GR - Goods Receipt

IV - Invoice

POC - Provisioning Operating Center (team in charge for creating Purchase Orders)

PtP - Procure-to-Pay

Golden Rules

Any internal control delivered by PtP must have a clear evidence on:

• its purpose/risk mitigation;
• its frequency (i.e. how often should it be performed);
• who's in charge to perform the internal control;
• its reporting and execution (i.e. a public storage place to be consulted at anytime by anyone/or defined target audience)
• target audience or the report /stakeholders);
  • what actions are expected from and by whom
  • Log of actions taken - if applicable

I - Invoice Divergence Control (control over Price Differences)

Purpose

It aims at following up the proper applicability of the tolerance rules, showing all invoices with price discrepancy in 2 main axis, by item :

Roles and Responsibilities

• Frequency: Twice a month:
  • Until day 5 (for invoices posted between 16th and Last day of previous month
  • Until day 20 (for invoices posted between 1st - 15th of the current month
• Task Role: Ensure discrepancy rules were respected as per Business Rules for handling price discrepancy and to detect trends on improper behaviors from suppliers or internal process inefficiencies within SBS, BUs or Functions
• Responsibility: SC-PtP (normally Accounts Payable but can also be performed by any other team inside PtP according with center operational definition)
• Target Audience: PtP Process Experts + SC-PtP Manager/Leads + ROPM/RO Leads
• Evidence Storage: Google Drive Folder by Center
• Access Requirements:
  • SAP Transaction:
    • WP1: ZWFA01K
    • PF1: ZWFA01K 

Execution Guidelines

Step 1 - Export Data

Prior Note: You can use this template as basis to paste the information into sheet "Raw Data" to benefit from some predefined formulas.

1.1 - You should enter in the SAP transaction dedicated to this report and execute it with following criteria:

• Posting Date: 16.M-1.YY until 31.M-1.YY   or   1.M.YY until 15.M-1.YY  , depending on whether report concerns to last 15 days of previous month or first 15 days of current month, respectively.
• Company Code: according with your center scope
• Layout: none
  

1.2 -  Then, execute and export the output to Excel.

Step 2 - Analyzing Data

2.1. - Add an additional columns to the report downloaded previously as follows: 

Note: Whenever you have discrepancies Outside Tolerance you should screen and analyse to understand if it was an effective discrepancy and if it was properly validated as described in procedure: III - Handling Price Discrepancy

• sometimes, due to dynamic exchange rate calculation or program determination rules, you may conclude that in fact no discrepancy exists and so you should adjust the comment in each "Tolerance Cluster" column accordingly.

2.2 - Create 4 pivot tables as follows:

Step 3 - Deployment