Agenda P2P Process benefits to Business functions Ariba P2P Components Requisition Process Requisition approvals Receiving Process Invoice process Prospective Procure to Pay Flow
Agenda
P2P Process benefits to Business functions
Ariba P2P Components
Requisition Process
Requisition approvals
Receiving Process
Invoice process
Prospective Procure to Pay Flow
P2P Process Benefits to Business Functions
-Procurement Organization Challenges
-Stake Holder Challenges
-Ariba Solutions
-Ariba Procure to Pay
Procurement Organization Challenges
Procurement compliance?
• (Pricing, suppliers, contracts)
Purchase controls
• (Approvals, budget-checking)
Order Management
• (Order confirmations, changes, ship notices)
AP efficiency
• (Paper, exception, matching, approvals)
Management and Control
• (Visibility, Analysis, Transparency)
FIND
ORDER
ORDER
PAY
MIX
Stakeholder Challenges
User
I need to find things quickly, get
approval, order fast and track
status
End-
User
What are my real savings?
How is purchasing impacting
the bottom-line?
CPO / CFO
How do I enforce purchasing
policy compliance across my
distributed organization
Purchasing
Manager
I spend too much time on
routine PO/Invoice
processing
Buyer /
AP Executive
Stakeholder
Challenges
Ariba Solutions
Ariba
Procure-to-Pay
User
I need to find things
quickly, get approval,
order fast and track status
I spend too much time on
routine PO/Invoice
processing
How do I enforce purchasing
policy compliance across my
distributed organization
What are my real savings?
How is purchasing impacting
the bottom-line?
End-User
CPO / CFO
Purchasing
Manager
Buyer /
AP Executive
Automated approvals Electronic POs and Invoices Supplier Connectivity
Desktop requisitioning Electronic catalogs Fast approvals
Manage Supplier Process Alerts & Notifications Exception Mgmt
Measurable savings Enforce best practices Total Cost of Ownership
Ariba Procure to Pay
Enforce Compliance & Order -Requisition Creation
-Requisition Workflow
-Order to Network or ERP
-Optional Receipt
Receive & Reconcile-Receive Goods & Services
-Asset Tracking & ERP Export
Invoice & Pay-Invoice Reconciliation
-Configurable Invoice Workflow
-Invoice Against Contract
-Optional Working
Capital Management Solutions
Supplier Collaboration
Select Goods & Services-Catalog-based requisitioning
-Goods & Complex Service
-Contract Compliance
Ariba P2P Components-Ariba Requisition to Pay Process
-Buying tool
-Receiving Engine
-Invoicing Engine
-Catalog/Content Engine
-Ariba Network
-Contract Compliance
Requisition to Pay Process
AribaP2P
Shipment
Supplier
AccountsPayable
Arib
a N
etw
ork
Central Receiving
PurchaseOrder
2
Requester
Requisition
3
Receipt
4
Requisition
1
Payment Push
7
Payment
8
6Reconciliation
Invoice
Requesters Can ReceiveDirectly for
certain commodities too
ElectronicInvoice
5
The Buying Tool
Purchase Requisition
Cost Assignment
Contract Compliance
Approval Workflow
Buyer’s tools
Purchase Order Management
Shipment Notice Visibility
Goods/Service Reception
Receiving Process
Desktop Receiving
Central Receiving
Auto Receipt
Partial Receiving
Asset Tracking
Controlled Tolerance
Invoicing Process
Using ARIBA
Find PO in the same system
Automatic rules for receiving
Automatic rules for non PO
invoices
Integrated contract compliance
Integrated reporting across all
systems and tools
Supplier Network
Accounts Payable
Invoice Mgmt Tool
Requesters
Procurement Tool
Catalog/Content Engine
Cat
alo
gs
Internal (private) Catalogs
External Catalogs
Catalog Reporting
Catalog Validation
Content Validation
Catalogs Through Ariba Network
Ariba Network
SUPPLIER.ARIBA.COM
1. Suppliers upload catalogs
Buyer subscribes to catalogsfrom Supplier 2
Supplier 1
Item AItem BItem CItem D...
Supplier 1 uploads
catalog
Procure-to-Pay
3. Scheduled task imports catalogs
Office Supplies
Electric Supplies
Computer Supplies
Paper
Writing
Filing
Cable
Batteries
Hardware
Software
Catalog
Supplier 2Item FItem GItem HItem J...
Supplier 2 uploads
catalog
Supplier 1
Item AItem BItem CItem D...
Supplier 2Item FItem GItem HItem J...
BUYER.ARIBA.COM
The Ariba Network
Ele
ctro
nic
Co
nn
ect
ivit
y Purchase Orders
Change Orders
Cancellation Orders
Advanced Shipment Notices
Invoices
Invoice Status
Remittance Advices
Catalog Management
AribaNetwork
Ariba Network Supplier Activities- Order Confirmations,
Shipment Notices & Invoices
The AN(Ariba Network) Architecture
Customer 1
Customer 2
Customer 3
Ariba Network
Invoice and Pay Status
Invoice Entry
PO Inbox
Collaboration
Payment Services
Transaction Routing
Docs & Training
BUYER.ARIBA.COM
SUPPLIER.ARIBA.COM
Supplier Mgmt
Catalog Content Staging
Supplier
HTML
Supplier
XML
Supplier
Fax
Supplier
EDI
Supplier
Contracts Compliance
•Covers all products or services purchased from the supplierSupplier Level
•Covers all products or services, identified by specific commodity codes, purchased from the supplierCommodity Level
•Covers all items from a specific catalog furnished by the supplierCatalog Level
•Covers specific items purchased from a supplier. Contract items can be made visible for users to add to requisitions or invoices in the same manner as catalog items
Item Level
There are four possible contract types that define the scope of a contract
In order of increasing specificity:
Contracts Creation Options
Release ContractNo-Release
ContractBlanket Purchase
Order
Specify if PO is required
to release funds against
a contract.
Encumbers funds on the
contract. Ariba
automatically adjusts the
available amount and
other accumulators for
the contract based on the
purchase requisition
status.
Blanket Purchase Order
is an attribute of a
contract – i.e., it is set up
by creating a Contract
Request, not a
Requisition
BPO’s can be set up as
Release-Order or No-
Release Order contracts
If you set the “Release
Required” option to “No”
on the contract request,
you create a No-
Release-Order Contract.
You do not create
purchase orders against
a No-Release-Order
contract, but you can
receive against it, and
suppliers can invoice
against the contract.
Requisition Process
-Requisition to PO Process Overview
-Requisition Approval Process
Requisition to PO Process Overview
Requisition Purchase OrderApproved
CatalogsNon-
CatalogContract
CIF CatalogPunchoutCatalog
1. Search and Select Commodities from CIF or Punchout Catalogs
2. And/Or Add commodities as Non Catalog Items and/or Contract documents into a requisition.
And/Or And/Or
3. The Requisition gets approved and converts into a Purchase Order, before it is sent to the Supplier.
Requisition Approval Process Overview
• What is an Approvable Document?
An document that must be approved by a designated approver before it
can be acted upon.
Requester Approver Action
Requisition Purchase OrderApproved
CatalogsNon-
CatalogContract
CIF Catalog
PunchoutCatalog
And/Or And/Or
Supervisor
Purchase Order
Requester
Purchasing Agent
Category Expert
Contract Approver
Receiving Process
Receiving- Recap
On Receiving the Purchase Order, the supplier fulfills the order.
Goods are shipped to the customer.
Depending on the kind of commodity, receiving methods could be of two types-
Desktop Receiving
Requesters receive shipments at their desks.
Only the requester can perform the receiving transaction.
Central Receiving
Goods are received at a central location, and more than one user can receive shipments.
Users who are members of a certain group receive goods that have a specific commodity code.
Invoicing Process
-Invoicing Overview
-Manual Invoicing
-e-Invoicing
Invoicing Process Overview
Invoice Reconciliation (IR) OK2Pay Reconcilled
Supplier sends invoice using
the Ariba Network
Invoice Entry users from AP
staff create invoices.
Or
1. After shipping the goods ordered by the customer, the supplier can create an invoice against the PO on the Ariba Network, or
2. After shipping the goods ordered by the customer, the supplier sends the hard copy of the invoice, which could be manually entered by members of the Accounts Payable department.
3. Once the Invoice is received, and the resultant IR reconciled, the OK2Pay file is generated and sent to the Payment System for payments processing.
Manual Invoicing
Ariba P2PAriba
NetworkSupplier
1. Received PO through
Ariba Network or a
Manual Copy.
Customer
3. Received Goods and
Paper Invoice from
Supplier
PO1 PO1
4. AP executive creates
Invoice manually on
Ariba P2P based on the
paper invoice and
reconcile the resulting
invoice reconciliation
document.
INV12. Sent Goods and Paper
Invoice to Customer
INV1
e-Invoicing
Ariba P2PAriba
NetworkSupplier
1. Received PO through
Ariba. Network
Customer
3. Received Goods from
Supplier
PO1 PO1
5. AP executive receives
the e-Invoice and
reconciles it. Once
reconciled, the invoice
is pushed for payment.
INV1 INV1 2. Sent Goods to Customer
4. Post sending goods
supplier creates an
Invoice on the Ariba
Network against the PO.
Prospective Procure to Pay Flow
Procure to Pay Flow
JDE
S
U
P
P
L
I
E
R
APPROVAL
FLOWS
PO
export
Receipt
export
REMADV REMADV REMITTANCE
INTERNAL
INV
ARIBA
NETWORK
S
U
P
P
L
I
E
R
B
U
Y
E
R
PO PO
OK 2 Pay
export
P2P
(User Interface)
INV
PO
FLIP
INV
INV STATUSINV STATUS
EDI INV
EDI
Supplier
cXML
Supplier
cXML
INV
Invoice
Reconciliation
Approval Flows
Receiving
Requisition
Process
Contract
Compliance
Ariba P2P
ITK
DTT
Firewall