Non PO Invoices VIM Workflow Process

Process Design Documentation

Non PO Invoices VIM Workflow Process
Table of Contents

1 Overview 2
1.1 Business Requirements & Process Flow 2
2 Non PO Workflow 3
2.1 Account Assignment Model 3
2.2 Scanning/Indexing 4
2.3 Approval Workflow 5
2.4 Non PO Approval 5
2.5 Email Notification 5
3 VID User Responsibilities 6
3.1 Creating a VID 7
3.2 COA Approval 7
5 VIM Analytics and Reporting 8
6 Appendices 8

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1 Overview

1.1 Business Requirement & Process Flow

SAP Vendor Invoice Management (VIM) by OpenText as the tool for processing Non PO
invoices. (See appendix for Non PO Invoice categories).This solution is in line with the
overall P2P Programme assumptions that Open Text suite of tools be the global
standard, including scanning, OCR, document storage and VIM workflow. The design
base on account assignment model (AAM). In VIM solution extended AAM with approval
relationship thur VID ( Vendor Invoice Management ID)
Below is the high level Non PO invoice workflow:

2 Non PO Workflow

2.1 Account Assignment Model

The account assignment model is an accounting template capturing user and accounting
information tied to the users SAPID. Transaction code FKMT, is used to create a VID
using the account assignment model. It can be hundreds of lines or one line entry. At
least one line of account coding is mandatory. All fields can be changed/updated with the
transaction. The Display Header of the account assignment model contains the VID
name. The naming convention is V+9 characters which include 6 SAPID. (The last
characters are freeform) VID’s that are not in the correct format will not be routed to
approval. (10 character total).
The attributes of the account assignment found on the initial screen are currency, and
chart of accounts determination and are mandatory. The text field is optional.

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In Display Line Items (below) selecting the Screen template using the menu path under
Settings pull up the template variants. One of three templates can be selected: Internal
Order, Cost Center, or WBS element. Posting Key, Company Code, G/L account, Tax
code, Cost center, and Amount are included in the line item criteria. (At the very least,
company code is mandatory and cannot be changed). You can also build an account
assignment to be allocated based on a percentage you assign (all lines together must
total 100%).

 The VID must be tied to the VID owners SAPID

 The VID owner must be present in COA.
 VID owners approval limits tied to COA

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2.2 Scanning/Indexing
Invoices are received at Scanning location and scanned, migrated into Filenet and
indexed by AP Outsourced Service Provider. Indexing values are listed below. These
values will be taken from the VID account assignment and the invoice image. There is an
outbound interface from SAP that copies those VIDs to an Oracle database that enable
the indexer to lookup the VID account assignment values. Indexing also involves
matching the invoice to an existing vendor ”remit to” address in the VMdB. Filenet will
perform a duplicate invoice check by matching 3 of 3 fields (invoice date, invoice amount
and invoice number) and invoices matching this criteria are automatically directed to a
queue for further research. VID’s will be validated during the indexing process. If the VID
is invalid it will be routed to a work queue within the AP team for resolution. If the VID is
missing on the invoice, the invoice will be returned to the vendor.

Scan Operator:
 Sorts invoices by company code
 Stamp receipt date, required to calculate payment terms; and apply barcode label
to identify the invoices and have batch name for scanning
 Scan Non PO Invoices including the VID
 Verify scanned images are clear

AP Outsourced Provider:
Scanned images are migrated into Filenet and assigned a Doc ID. AP will log into Filenet
to retrieve Canada’s invoices with Doc ID. AP then manually keys Invoice data elements
from Filenet into VIM. The mandatory fields are:

 VID number
 Company code
 Barcode
 Invoice number
 Total gross invoice amount
 Total tax amount
 Currency
 Receipt date
 Vendor number

Once indexed, AP outsource provider will validate/resolve any exceptions by working

with the business VID owner or vendor master team whichever is applicable. When all
exceptions are resolved, the invoice is ready to be parked for approval.
2.3 Approval Workflow

An SAP parked document is created and sent to VID owners SAP inbox. This will initiate
the approval workflow. Initial routing is based on VID number, which is uniquely tied to
one SAP user.

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2.4 Non PO Approval

The VID owner will receive the document in his inbox. The VID owner is responsible for
confirming the goods/services have been received by the business, and the coding is
correct before approving the value of the invoice according to his DOA. Invoices can be
referred back to the AP team if coding changes are needed that cannot be accessed by
the VID owner. For example indexed value needs to be corrected, (invoice number,
invoice date, vendor etc.), the invoice does not belong to you (incorrect VID applied) etc.
Invoices can be forwarded to other SAP users to obtain the appropriate DOA approval.
When header corrections are needed, the VID owner will refer the document back to the
AP team with comments. The AP team will correct the entries and refer back to VID
owner for approval.
Once all information is correct, and the invoice is within the VID owner’s approval DoA,
the invoice can be approved and will post to SAP automatically.
If the invoice is rejected, it will be routed back to the AP outsourced provider, with
comments, for return to the vendor. (RTV process)
Once an approver has rejected an invoice, the item is sent back to the AP to delete the
parked document from the system. The scanned image will be stored separately in
Document storage software. This can occur if the invoice has been reviewed and it is
determined that this is not a valid invoice. If duplicate of an already processed document
or mistake made by the vendor. In either case, this is an invoice that should not have
existed. Invoice deletion reasons;

 Duplicate Invoice
 Rejected Invoice
 Incorrect vendor
 Incorrectly processed

If the VID owner does not have enough COA ( Chart Of Authority) to approve the
invoice, the invoice will be referred/forwarded to his manager/delegator for approval*.
Manager’s user details are maintained in the Z table along with the approver authority
and derived from external module. (See COA Approval below) Once the COA approver
approves the invoice, it will be posted in SAP automatically.

2.5 Email Notification

At each approval step in the process, an email notification will be generated to the VID
owner/approver when a document is initially parked in his inbox. After 2 days of inaction
on that document, an email notification will be generated to the VID owner’s manager
that a document is waiting for review/action with the VID owner. After 2 additional days of
inaction, an email notification will be generated to the manager’s manager that a
document is waiting for review/action. (End of escalation)

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3 VID User Responsibilities

The following are the critical responsibilities of a VID user:

 Maintain active SAP ECC6 access
 Compliance with standard naming convention
 Create, change, and delete the VID’s when applicable
 Communicate the VID number to vendor if actually purchasing goods or services.
 Ensure the vendor is created/setup in SAP prior to invoice submission
 Ensure goods or services are received
 Post(approve) invoices within a timely manner
 Ensure coding and accounting is correct:
o Company code
o Cost objects (work breakdown structure, cost center, and internal order
o Tax code
o Vendor number
o Payments terms
o Amount of payments
 Forward to proper COA approver in a timely manner (if applicable)

The person with ultimate invoice approval should be the owner of the VID.
3.1 Creating a VID

Responsibility
The responsibility of the VID creation process lies with the Control team or Controller.
The Control team will ensure the accuracy of SAP VID’s and VID invoice payments.
These leaders are to ensure the VID creation and usage is sufficiently regulated to
provide appropriate levels of internal control over the payments being processed through
SAP on behalf of their business or function. This team will also be responsible for the
maintenance and communication of changes to VID’s when a user’s purchasing
responsibility changes. (Users leave the business or changes roles).

Creation
The first step in creating a VID is communication between the user and their supervisor.
This communication should determine the authority amount (COA) and the business
codes the user is to use in the VID. The delegation of authority and business area codes
must be updated in the COA website by the BU control team/Controller. A valid DOA for
invoice approval in the COA website is required before anyone can approve invoices
using a VID.

3.2 COA Approval

This activity pertains to the replication of approvals data from the COA (Delegation of
Authority) database located on the corporate website into a Z table within SAP
environment. Once acquired, the relevant SAP workflows will be driven by the converted

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Ztable contents to identify the required approval path based on the users’ authority, and
values. COA changes take place on an “as required” basis. Each day the COA will
transfer a complete file for this interface to SAP. This interface will run on a daily basis,
i.e. overnight.

Maintenance of COA authority is the responsibility of the BU Control team/Controller.

4 VIM Analytics and Reporting

VIM analytics in its standard form will be used. Users are able to specify the information
fields from a standard list that are useful to them. VIM analytics should provide a
statistical overview on the status of the invoices in every step in the workflow process.
This suite will be used for monitoring the progress of the invoice at various stages and
verifying invoices that were approved/posted in a given period.
These reports will be used as a control mechanism to ensure invoices are being
approved appropriately by VID owner managers.

Appendix

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