Tasks to be completed when creating an operating procedure (from creation to publication)

  1. Enter the Title of the procedure.
  2. Add the following Labels Labels: 
  3. Fill all fields as described
  4. Once the procedure is completed, publish it using the PtP Procure to Pay approval workflow

 

Table of contents 

By default the table of contents displays Heading 1 & Heading 2 (other levels can be added)


Scope

1. Remove the icon(s) when not applicable

2. Add countries when the procedure is for a specific country (optional)

ERP

3. Remove the icon(s) when not applicable

 

References

4. Add the link to SAP procedures (when it exists)

Attachments

5. Add the link to attachments (to be stored in AODocs or GDrive) or external links  

Objective and Scope

This procedure aims at referring the official reports Procure-to-Pay (PtP) must deliver, in which frequency; with whom it should be shared and the expected actions from them.

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 report delivery by PtP must have a clear evidence on:

  • its purpose;
  • its frequency;
  • who's in charge to deliver it;
  • target audience or the report /stakeholders);
  • what actions are expected;
  • Log of actions taken - if applicable

 

I - Divergence Report (report for Price Differences)

Purpose

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


Axis

Evidence PurposeDescriptionDifference Calculation
Goods receipt vs Invoice (GR-IV)price discrepancy for 2-Way-Match InvoicesComparison between Goods receipted in the system and the Invoice posted (per line item)Goods Receipt Line Amount - Invoice Receipt Line Amount
Net PO Item Amount vs Invoice Item Valueprice discrepancy for 3-Way-Match InvoicesComparison between Net PO in the system and the Invoice posted (per line item)PO Line Amount - Invoice Receipt Line Amount


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
  • Responsibility: SC-PtP (normally Accounts Payable but can also be performed by any other team inside PtP as per center definition)
  • Target Audience: PtP Process Experts + SC-PtP Manager + ROPM
  • Access Requirements:
    • SAP Transaction:
      • WP1: ZWFA01K
      • PF1:


Creating the Report

Step 1 - Export Data

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 whether report concerns to last 15 days of previous month or first 15 days of current month, respectively.
  • Company Code: according with you center scope
  • Invoice Cockpit Document Type: exclude "VP" and "IP"

 Then, execute and export the output to Excel.

Step 2 - Analyzing Data

Add an additional column to the report so that you cluster each invoice difference line by:

Inside Tolerance (<=200€)  
Outside Tolerance (>200€)  
List of Exceptions  


Inside Tolerance (<=€200)

Outside Tolerance (=> 1000)

List of Exceptions

Step 3 - Deployment