Procure to Pay Handshakes

Transcription

1 PROCURE-TO-PAY TRAINING YMPOIUM 018 Procure to Pay Handshakes Presented by: LeAntha umpter (Defense Procurement) & Lora Muchmore (DoD Comptroller) April 3 April 5, 018 Hilton Orlando Orlando, FL 1

2 WHAT ARE PP HANDHAKE? Data exchanges ( or handshakes ) between functional communities that lack standard business rules and internal controls necessary to eliminate material weaknesses and should: Facilitate downstream business process; and Achieve system to system interoperability

3 WHY PP HANDHAKE? H-1: Create PR H-: Validation of Funds / Funds Check Prior to Award H-3: Record Obligation to Accounting H-4: Record Obligation for Entitlement H-5: Receipt / Acceptance H-6: Perform Entitlement H-7: Distribute Payment H-8: Disbursement H-9: Contract Closeout To focus the operational communities governing the PP process on enterprise standards and procedures critical to efficient and effective business at nine critical exchanges 3

4 Purchase Request Definition A procurement-ready PR contains information regarding a requirement, and must include at least the following components List of items (supply/service) to be delivered with quantity and unit of measure Description of items and applicable specifications, performance work statements, etc. Depending on the requirement type, a PR may also include: Packaging and marking requirements Inspection and acceptance requirements Delivery schedule and destinations upporting documentation (e.g. IGCE, Acquisition Plan, J&A, suggested sources, ) If a PR is funded, it will also include: Certified funding information 4

5 HANDHAKE 1 CREATE PURCHAE REQUET RED Establish policy for purchase request (PR) Enterprise Challenges: Guaranteeing uniqueness of the requirements document Linking to funding, not accounting, organization PR number format 5

6 HANDHAKE 1 CREATE PURCHAE REQUET RED Enterprise Challenges: Tracing PRs uniquely Carrying PR number throughout award linking back to original PR Amendments to PRs after contract action award Reuse of PRs for more than one contract action Commitment ID number and PR Line Item Number 6

7 HANDHAKE 1 CREATE PURCHAE REQUET RED Enterprise Challenges: Achieving efficiency Automation Reducing complexity Data standards 7

8 PR cenario 1: PR to KO (same org) PR/Acctg ystem PR #: PR Contract Writing ystem PIID: W91KHZ16C0001 PR #: PR1345 Either PR/Accounting system are fully integrated, or the accounting system accepts and uses the PR system s # as its own. PR is sent to contracting from the PR system. teps 1. PR ystem Generates a funded requirement in the format, and sends the package to the contract writing system. Contract writing system records the PR system s PR number and includes it on the contract as a key to link the forthcoming contract to the PR Potential need for an acknowledgement transaction from the CW to the PR system 8

9 PR cenario 7b: Reimbursable MIPR to eller PR to KO Requiring PR/Accounting MIPR #: PR Acceptance ervicing PR ystem ervicing PR #: PR345 Requiring MIPR #: PR w/o Funding 4 5 PR #: PR345 Funding Doc#: A98765 or Ack. with Acct ystem # Contract Writing ystem PIID: W91KHZ16C0001 PR #: PR345 MIPR#: PR1345 CIN: A ervicing Accounting ystem teps 1. Requiring PR ystem Generates a reimbursable MIPR in the format and sends to the ervicing PR system. ervicing PR system records the originating system s MIPR number, and sends the MIPR acceptance response (i.e..0) back to the originating PR/Accounting system 3. ervicing PR ystem generates a requirement in the format and sends to its Accounting system 4. ervicing accounting system records the servicing system s PR number, performs funds certification, and sends an acknowledgement with its reference number and accounting citation data to PR system 5. ervicing PR system sends the transaction to the CW with its own PR number, the MIPR number, and the Funding reference number. 6. Contract writing system records all numbers and displays them in the contract. 9

10 Comparison of PR and Contract Content PR Header (addressees, PR number, approvals) List of items Funding Technical requirements (OW/PW or pecifications, packing, marking, inspection criteria, etc.) Delivery schedule and locations PR Number Contract Header (Contractor; Issue, Admin, and Pay offices; PIID; signature and effective dates) List of items and prices/costs (revised and completed from solicitation based on proposal) Funding Technical requirements (OW/PW or pecifications, packing, marking, inspection criteria, et.c) Delivery schedule and locations upporting documents (to contract file, e.g. IGCE) Contract clauses Contract attachments Contract attachments (including those added from proposal) 10

11 Comparison of PR and Contract Content ERP view PR Header (addressees, PR number, approvals) PR Number Contract Header (Contractor; Issue, Admin, and Pay offices; PIID; signature and effective dates) List of items List of items Funding Funding 11

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13 BACK UP 13

14 PR cenario a: PR to Acct g to KO (same org) PR and Accounting system are not integrated; the accounting system has its own #. PR is sent to contracting from the PR system. PR ystem PR #: PR1345 APR w/o Funding Contract Writing ystem 4 PIID: W91KHZ16C0001 PR #: PR1345 CIN: APR Accounting ystem APR PR#: PR1345 TBD (511C) 5 teps 1. PR ystem Generates a requirement in the format, and sends to accounting for funding information. Accounting system records PR number, creates its own identifier, performs funds certification, and sends funding document (including accounting citation data) to PR system 3. PR system records funding document number and adds accounting citation to the PR package 4. PR ystem sends complete (i.e. funded) PR to contract writing system. 5. Contract writing system records the PR number in the PR field on the contract and the Accounting ystem number in the CIN field as a key to link the PR ystem data and Accounting ystem data to the contract 14

15 PR cenario b: PR to Acct g to KO (same org) PR and Accounting system are not integrated; the accounting system has its own #. PR is sent to contracting from the Accounting system. PR ystem PR #: PR1345 APR w/o Funding Contract Writing ystem 4 PIID: W91KHZ16C0001 PR #: PR1345 CIN: APR Accounting ystem APR PR#: PR1345 or Ack. with Acct ystem # 5 teps 1. PR ystem Generates a requirement in the format, and sends to accounting for funding information. Accounting system records PR number, performs funds certification, and sends an acknowledgement with its reference number (and accounting citation data?) to PR system 3. PR system records funding document number and adds accounting citation to the PR package 4. Accounting system sends complete (i.e. funded) PR to contract writing system. 5. Contract writing system records the PR number in the PR field on the contract and the Accounting ystem number in the CIN field as a key to link the PR ystem data and Accounting ystem data to the contract 15

16 DC MIPR cenario 3: DC MIPR to KO PR /Acctg ystem PR #: PR ervicing CW PIID: W91KHZ16C0001 MIPR #: PR1345 CIN: PR1345 Either PR/Accounting system are fully integrated, or the accounting system accepts and uses the PR system s # as its own. PR is sent to servicing contracting from the PR system. teps 1. PR ystem Generates a funded Direct Cite requirement in the format, and sends the package to the contract writing system. Contract writing system records the PR system s PR number on the contract as a key to link the forthcoming contract to the PR 16

17 PR cenario 4a: DC MIPR to Acct g to KO PR and Accounting system are not integrated; the accounting system has its own #. PR is sent to contracting from the PR system. PR ystem PR #: PR1345 APR w/o Funding 4 PIID: W91KHZ16C0001 PR #: PR1345 CIN: APR Accounting ystem APR PR#: PR1345 TBD (511C) ervicing CW 5 teps 1. PR ystem Generates a requirement in the format, and sends to accounting for funding information. Accounting system records PR number, creates its own identifier, performs funds certification, and sends funding document (including accounting citation data) to PR system 3. PR system records funding document number and adds accounting citation to the PR package 4. PR ystem sends complete (i.e. funded) PR to contract writing system. 5. Contract writing system records PR number in the PR field on the contract and the Accounting ystem number in the CIN field as a key to link the PR ystem data and Accounting ystem data to the contract. 17

18 PR cenario 4b: DC MIPR to Acct g to KO PR and Accounting system are not integrated; the accounting system has its own #. PR is sent to contracting from the Accounting system. Requiring PR ystem PR #: PR1345 APR PIID: W91KHZ16C0001 MIPR #: PR1345 CIN: APR or Ack. with Acct ystem # ervicing CW 5 w/o Funding Requiring Acctg ystem APR PR#: PR1345 teps 1. PR ystem Generates a requirement in the format, and sends to accounting for funding information. Accounting system records PR number, performs funds certification, and sends an acknowledgement with its reference number (and accounting citation data?) to PR system 3. PR system records funding document number and adds accounting citation to the PR package 4. Accounting ystem sends complete (i.e. funded) PR to contract writing system. 5. Contract writing system records PR number in the PR field on the contract and the Accounting ystem number in the CIN field as a key to link the PR ystem data and Accounting ystem data to the contract. 18

19 PR cenario 5: DC MIPR to eller PR to KO Requiring PR/Accounting MIPR #: PR ervicing PR ervicing PR #: PR345 MIPR#: PR1345 ervicing CW PIID: W91KHZ16C0001 PR #: PR345 MIPR #: PR1345 CIN: PR teps 1. Requiring PR ystem Generates a funded requirement in the format and sends to the ervicing PR system. ervicing PR system records the originating system s PR number, and sends the complete PR package to the contract writing system using the requiring system PR number as the key. 3. Contract writing system records its own PR number in the PR field and the originating MIPR in the MIPR field, as keys to link the PR ystem data and Accounting ystem data to the contract. Requirement for a notification of obligation back to the requiring system. CW could use AAI for routing. 19

20 PR cenario 6: DC MIPR to Requiring Accounting to PR to KO ervicing PR ystem Requiring PR/Accounting MIPR #: PR1345 A or Ack. with Acct ystem # ervicing PR #: PR345 MIPR#: PR1345 CIN: A A45678 MIPR #: PR1345 ervicing CW PIID: W91KHZ16C0001 PR #: PR345 MIPR #: PR1345 CIN: A Requiring Accounting teps 1. Requiring PR ystem Generates a requirement in the format and sends to its Accounting system. Requiring accounting system records the requiring system s PR number, performs funds certification, and sends an acknowledgement with its reference number (and accounting citation data?) to PR system 3. Requiring accounting system sends the complete PR package to the ervicing PR ystem. 4. ervicing PR system receives the transaction, records the Requiring system s PR number in the PR field and the accounting system number in the CIN field, and generates a transaction 5. Contract writing system records its own PR number in the PR field, the originating MIPR in the MIPR field, and the Accounting ystem number in the CIN field as keys to link the PR ystem data and Accounting ystem data to the contract. 0

21 PR cenario 7a: Reimbursable MIPR to eller PR to KO Requiring PR/Accounting MIPR #: PR Acceptance ervicing PR/Accounting ystem ervicing PR #: PR345 Requiring MIPR #: PR Contract Writing ystem PIID: W91KHZ16C0001 PR #: PR345 CIN: PR345 MIPR#: PR teps 1. Requiring PR ystem Generates a reimbursable MIPR in the format and sends to the ervicing PR system. ervicing PR system records the originating system s MIPR number, and sends the MIPR acceptance response (using.0) back to the originating PR/Accounting system 3. ervicing PR system sends the transaction to the CW with both its own PR number and the MIPR number. 4. Contract writing system records both numbers and displays them in the contract. 1

22 PR cenario 11: Advance PR to KO (same org) PR and Accounting system are not integrated; the accounting system has its own #. PR is sent to contracting from the PR system. PR ystem PR #1: PR1345 PR #: PR1356 APR w/o Funding 4 1 TBD (511C) Accounting ystem APR PR#: PR1356 w/o Funding Contract Writing ystem PIID: W91KHZ16C0001 PR #: PR1356 CIN: APR teps 1. PR ystem Generates a requirement in the format, and sends to contracting for informational purposes. PR ystem later sends requirement to accounting for funding information 3. Accounting system records requirement information (including PR number), performs funds certification, and sends funding document (including accounting citation data )to PR system 4. PR system records funding document number and adds accounting citation to the PR package, then sends complete (i.e. funded) PR to contract writing system. 5. Contract writing system records the accounting system s commitment number in the CIN field and the PR number in the PR field as a key to link the PR ystem data and Accounting ystem data to the contract How would the CW link PR#1 to PR#? Is it necessary?

23 PR cenario 8: Reimbursable MIPR to Accounting to ervicing PR to KO Requiring PR ystem PR #: PR ervicing PR ystem ervicing PR #: PR345 MIPR #: PR1345 Funding Doc#: RPR1345 Requiring Accounting ystem RPR1345 PR #: PR Contract Writing ystem PIID: W91KHZ16C0001 PR #: PR345 CIN: PR345 MIPR#: RPR teps 1. Requiring PR ystem Generates a funded requirement in the format and sends to the Requiring Accounting system. Requiring accounting system records the PR system s PR number, and sends the complete PR package to the ervicing PR ystem. 3. ervicing PR system receives the transaction, records the requiring accounting system s PR number and generates a transaction 4. Contract writing system records the requiring accounting system s PR number as a key to link the PR ystem data to the contract 3