SC112 Umoja Logistics Overview (Inbound Goods Process): PK & SPM. Umoja Logistics Overview (Inbound Goods Process): PK & SPM Version 17 1

Transcription

1 SC112 Umoja Logistics Overview (Inbound Goods Process): PK & SPM Umoja Logistics Overview (Inbound Goods Process): PK & SPM Version 17 Copyright Last Modified: United 01-August-13 Nations 1

2 Agenda Course Introduction Module 1: Umoja Logistics (Inbound Goods Process) Course Summary Course Assessment Course Survey 2

3 Course Overview The purpose of the Umoja Logistics Overview course is to introduce the Inbound Goods process for DFS-supported missions. This is an interim process applicable to Peacekeeping and Special Political Missions during the period of coexistence of the Umoja and Galileo systems, for activities performed when receiving goods from commodity vendors. Prerequisite Review You should have completed the following prerequisite courses: Umoja Overview Umoja Master Data & Coding Block Overview Course Duration: 1 hour and 30 minutes 3

4 Course Objectives After completing this course, you will be able to: Describe the high-level Inbound Goods process in Umoja Identify the key roles and responsibilities in the Inbound Goods process Describe the ways in which the Umoja implementation changes the Inbound Goods process Explain the difference between a virtual and a physical Goods Receipt 4

5 Agenda Course Introduction Module 1: Umoja Logistics (Inbound Goods Process) Course Summary Course Assessment Course Survey 5

6 Key Terminology Key Term International Public Sector Accounting Standards (IPSAS) International Commercial terms (Incoterms) Purchase Order (PO) Invoice Description A set of accounting standards issued by the IPSAS board for use by public sector entities around the world in the preparation of financial statements A series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. These three-letter trade terms are related to common contractual sales practices. Incoterms help in clearly communicating the tasks, costs and risks associated with the transportation and delivery of goods A buyer-generated document that authorizes a purchase transaction A vendor-generated document that indicates the products, quantities and agreed prices for products delivered by the vendor 6

7 Key Terminology Key Term Goods Receipt Low Value Acquisition Three-Way Matching Inbound Delivery Movement Type Description A document generated to acknowledge receipt of goods, against an inbound delivery, conducted at the point of first receipt or transfer of ownership A Purchase Order (PO) used for requirements that are up to $4000 USD issued without the direct involvement of Procurement. This replaces the Short PO process The comparison of quantities, price per unit, terms etc. appearing on the vendor s invoice with the information on the PO and the Goods Receipt. This is done through the Logistics Invoice Verification (LIV) process A document containing key delivery data required for triggering and monitoring the inbound movement of goods to the mission area. This is similar to an Advanced Shipping Notice (ASN) A three-character field in the Umoja ECC system to describe the type of material movement that needs to be performed. It is used for all types of goods movement in Umoja such as receipts and reversals 7

8 Key Terminology Key Term Virtual Goods Receipt Physical Goods Receipt Material Master Description A Goods Receipt posted in Umoja when the terms of a contract specify that the delivery of goods by a commodity vendor to UN occur at a named place of delivery other than the final destination A Goods Receipt posted in Umoja when the terms of a contract specify that the delivery of goods by a vendor to UN occur at the intended mission destination A Master Data record that contains information about all products procured, stored and shipped by UN. For example, Product ID, Product Category, Material Management and other physical or financial characteristics 8

9 Roles & Responsibilities The following Umoja Enterprise roles are involved in the Umoja Logistics process: Updates information about inbound movement of goods to the mission based on information provided by the commodity vendors and freight providers Inbound Coordinator Manages the information flow to indicate the transfer of ownership Enables downstream operations to be optimized through provision of shipment/movement information Cannot execute virtual or physical Goods Receipts transactions in Umoja Note: Role definitions have been modified for this interim process. 9

10 Roles & Responsibilities The following Umoja Enterprise roles are involved in the Umoja Logistics process: Virtual Receiving User Receives goods against commercial procurement during the Virtual Goods Receipt process Indicates UN s acceptance of goods during transfer of ownership, in accordance with the Incoterm Note: Role definitions have been modified for this interim process. 10

11 Roles & Responsibilities The following Umoja Enterprise roles are involved in the Umoja Logistics process: Receiving User Receives goods against commercial procurement during the Physical Goods Receipt process Indicates UN s acceptance of goods during transfer of ownership, in accordance with the Incoterm Note: Role definitions have been modified for this interim process. 11

12 Introduction to Umoja Logistics: Inbound Goods Process The Umoja Logistics Overview course introduces the Inbound Goods process for DFS-supported missions that is being implemented during the period of coexistence of the Umoja and Galileo systems, performed when receiving goods from commodity vendors. Inherent in this process is the tracking of inbound goods movement and, upon receipt, basic verification to affirm that goods being received conform to the Purchase Order (PO)/contract Goods received from internal transfers, such as inter/intra-mission transfers and Strategic Deployment Stock transfers, are received and managed through the current business process in Galileo Receipt of services is a different process and is introduced in the Service Receipt Process course Inbound Processing Umoja Goods Receipt Galileo Goods Receipt and Inventory Management* Note: *Galileo Goods Receipt and Inventory Management is not performed in Umoja. 12

13 Umoja Logistics Benefits The benefits of Umoja Logistics are: Material Master is shared across Procurement and Logistics through one global Material Master Record, ensuring consistent and accurate data. The material procured is similar to the one received and managed in the inventory. Goods Receipt is conducted in the same system where Procurement and Financial activities take place. This results in reduction of discrepancies and timely execution of payments. Standardization of the Inbound process across the Secretariat, inline with the industry best practices. Enhanced visibility on expected deliveries, enabling better planning and reduced needs for additional communications such as phone calls and s. IPSAS compliance regarding transfer of ownership (example: virtual receipt of goods that are freight forwarded). 13

14 Current State with Legacy Systems With the implementation of Umoja, several legacy systems are to be replaced as Umoja rolls out to locations. Within Supply Chain/Procurement/Logistics, the diagram below represents the current state. UNGM Sun ProcurePlus IMIS HQ CATS (Contract Administration Tracking System) Mercury Galileo Assets/Inventory Automated Interfaces Manual Data Updates/Uploads Systems Will Continue to Exist Systems to be Replaced 14

15 Future State Until Decommission of Galileo Within Supply Chain/Procurement/Logistics, here is how the Umoja system will interact with other systems (before the decommission of Galileo). UNGM UMOJA (Replaces SUN, Mercury, ProcurePlus and IMIS for payment) CATS (Contract Administration Tracking System) Galileo Assets/Inventory Automated Interfaces Manual Data Updates/Uploads Newly Linked System Umoja System 15

16 Coexistence of Umoja and Galileo The Umoja system will ultimately replace the Galileo system. However, due to the provisional retention of Galileo, the two systems will coexist. In effect, all goods from vendors are received in a two-step process. Umoja System Goods are first received in the Umoja ECC and treated as consumed (not held for inventory), for accounting and invoice payment purposes Automated one-way data transfer passes details of the Goods Receipt, including PO information Galileo System Then, the Receiving and Inventory Management process continues as per the current business process The information being transferred to Galileo depends on the attributes of the goods as defined by the Material Master in Umoja. For example, items that need to be serialized are flagged from Umoja and categorized as Non-Expendables in Galileo. 16

17 Coexistence of Umoja ECC and Galileo Galileo remains as a financial reporting and inventory management tool. Umoja provides a complete equipment and inventory management solution, which will be implemented in further rollouts of the Umoja functionality for Peacekeeping. It will provide additional functionality in the receiving process, including: Serial number creation Barcode printing Batch management/creation Quality inspection However, while Galileo is retained, these functions are not implemented for Peacekeeping locations. 17

18 Umoja ECC Output into Galileo When goods are first received in Umoja ECC, relevant material and procurement data flows into Galileo to pre-populate fields allowing for a faster receiving process in Galileo. Umoja ECC Galileo 18

19 What s Changing? With the implementation of Umoja, several business processes are changing: System Integration Financial Implications Inbound Delivery Process Virtual vs. Physical Goods Receipt Note: These processes are governed by IPSAS/OPPBA guidelines/procedures and documented in publications, such as the Procurement Manual, DFS Property Management Manual and other policies issued by UN. 19

20 What s Changing? System Integration Umoja links Procurement, Logistics and Finance functions. These functions share the Material Master Data through one global material record Users have access to the same information through one integrated system PO s, Goods Receipts and Invoices share the same information, eliminating data re-entry The Umoja/Galileo interface will pre-populate relevant PO details and assist in completing the downstream processes in Galileo Goods acquisitions through the Low Value Acquisition (LVA) process need to be "received" by a Receiving User in Umoja (i.e. R&I) in order to pay the invoice Procurement Finance Logistics 20

21 What s Changing? Material Master The Material Master Data is a Master Data record that contains information about all products procured, stored and shipped by UN. It determines how the material will be managed from the requisitioning to downstream processes. Key components of Material Master Data include: Unique ID of a product or service Product ID Type of product or service Matches the equivalent UNSPSC classification Characteristics to enable Material Management Product Category Material Management Characteristics Material Master Data Objects Other physical or financial characteristics 21

22 What s Changing? Financial Implications Umoja ECC s three-way matching functionality enables automated cross-check of PO, Goods Receipt and Invoice: If the documents cannot be matched, the system automatically blocks the payment If the documents do match, payments are cleared for processing, according to payment terms If physical discrepancies (example: damage) are found during Goods Receipt, a blocked status can be placed on the goods, resulting in no financial posting Umoja ECC performs three-way matching Invoice Goods Receipt Umoja ECC Purchase Order 22

23 What s Changing? Three-way Match Umoja ECC s three-way match functionalities allows the comparison of quantities, price per unit, terms etc. appearing on the vendor s invoice, with the information on the PO and Goods Receipt. Purchase Order Goods Receipt Invoice Item 1 Material: Quantity: Item 2 Material: Quantity: Contract terms Item 1 Material: Quantity: Item 2 Material: Quantity: Contract terms Item 1 Material: Quantity: Item 2 Material: Quantity: Contract terms 23

24 What s Changing? Inbound Delivery Inbound Delivery Process Umoja introduces the concept of inbound delivery, which is a system-generated document used to update delivery details (similar to an Advanced Shipping Notice provided by freight forwarders or vendors) The Inbound Delivery process provides visibility of the shipment status to all stakeholders (i.e. Procurement, R&I and Requisitioner amongst others). It is created against a PO and updated by the Inbound Coordinator with shipment information and documentation (e.g. Bill of Lading), as they become available Vendor shipment information is now accessible by the receiving mission within the same procurement system. The update of inbound deliveries will provide delivery dates and corresponding shipment information and documentation to receivers The Inbound Coordinator is responsible for all processes related to the inbound delivery Inbound Processing Umoja Goods Receipt Galileo Goods Receipt 24

25 What s Changing? Virtual and Physical Goods Receipt Goods Receipt is conducted at the point of first receipt or transfer of ownership, in accordance with the contractual Incoterms. This is the criteria used to distinguish between a virtual goods receipt and a physical goods receipt Virtual goods receipts do not have an inspection step before the payment is cleared for processing Umoja ECC uses movement types to execute the taken receiving actions Inbound Processing Umoja Goods Receipt Galileo Goods Receipt 25

26 How is Receiving Done in Umoja ECC? Now that we ve seen the changes Umoja ECC is bringing, the following section contains information on how the Goods Receipt process is performed in Umoja ECC. 26

27 Virtual and Physical Receipt for Common UN Incoterms The transfer of ownership that occurs between the seller and buyer is dictated by the Incoterm. Thus, a virtual goods receipt can occur at any location prior to the final receiving UN location. Incoterms 2010 commonly used by UN are depicted: Point of Origin Port Onboard Vessel Port UN Location EXW UN Virtual Receipt FCA Seller UN FOB Seller UN DAT Seller UN Seller Seller DAP DDP Physical Receipt 27

28 What is a Virtual Goods Receipt? Virtual Goods Receipt Vendor Delivers at Origin or Other Named Place (e.g. Port of Delivery) Vendor Delivers at Destination IPSAS requires goods to be received at the point of transfer in ownership from the commodity vendor to UN, as dictated by the appropriate Incoterms. This can occur before goods are physically received by the mission, for example when they are placed at the disposal of a UN-designated freight forwarder. In Umoja, this is considered a virtual goods receipt. Within the virtual goods receipt process: Inbound deliveries are updated with relevant information provided by commodity vendor to confirm delivery of goods The Virtual Receiving User then receives the goods against the inbound delivery Umoja ECC will automatically perform a three-way match and clear the payment for processing 28

29 Incoterms Applicable for Virtual Goods Receipt Virtual Goods Receipt Vendor Delivers at Origin or Other Named Place (e.g. Port of Delivery) Vendor Delivers at Destination Incoterms: EXW Ex Works FAS Free Alongside Ship FCA Free Carrier FOB Free on Board DAT Delivered at Terminal CFR Cost and Freight CIF Cost, Insurance and Freight CIP Carriage and Insurance Paid To CPT Carriage Paid To 29

30 What is a Physical Goods Receipt? Vendor Delivers at Origin or Other Named Place (e.g. Port of Delivery) Physical Goods Receipt Vendor Delivers at Destination Physical goods receipt refers to the process where commodity vendors deliver directly to the mission location, as dictated by the appropriate Incoterms. Within the physical goods receipt process: The Receiving User receives the goods against the inbound delivery in Umoja For a standard goods receipt, Umoja ECC will automatically perform a three-way match and clear the payment for processing If discrepancies are found, goods can be moved to a blocked status and the invoice for payment cannot be paid until resolved Requisitioners are notified by a system-generated upon goods receipt (under deliveries and blocked goods are indicated) 30

31 Incoterms Applicable for Physical Goods Receipt Vendor Delivers at Origin or Other Named Place (e.g. Port of Delivery) Physical Goods Receipt Vendor Delivers at Destination Incoterms: DAP Delivered at Place DDP Delivered Duty Paid DDU (Removed from 2010 Incoterms) 31

32 Umoja ECC Stock Type Umoja ECC uses movement types to execute the receiving actions taken. When a movement type is used, goods are received to a certain stock type. A stock type defines the system state that classifies goods. Stock types used in Umoja: Unrestricted Stock Material available for use upon receipt: This stock type allows full financial posting and invoice processing Blocked Stock Material not available for use upon receipt: Should only be used in exceptional cases Used when goods are clearly damaged or have different specifications from the PO Upon receipt of such goods, UN will not accept ownership until resolution is reached with vendor This stock type blocks full financial posting and invoice processing Note: Since inventory or stock is not managed in Umoja in this interim process, the purpose of a stock type is to determine financial posting and invoice processing. 32

33 Movement Types for Virtual Goods Receipt The following movement types are used for virtual goods receipt: Virtual Goods Receipt to Unrestricted Stock Description Goods receipt performed in Umoja ECC prior to the arrival of the goods in the receiving location Goods are always received to Unrestricted Stock Inspection is not conducted in Umoja ECC Financial Implication Full financial posting Invoice processing Three-way match 33

34 Movement Types for Physical Goods Receipt The following movement types are used for physical goods receipt: Description Goods Receipt to Unrestricted Stock Goods receipt performed when goods are delivered and first received at the intended mission destination (standard goods receipt) Financial Implication Full financial posting Invoice processing Three-way match 34

35 Movement Types for Physical Goods Receipt The following movement types are used for physical goods receipt: Description Goods Receipt to Blocked Stock Used in exceptional cases, when goods are clearly damaged or have different specifications from the PO, thereby prohibiting UN from taking ownership of the goods No posting in Galileo Financial Implication No financial posting No invoice processing 35

36 Movement Types for Physical Goods Receipt The following movement types are used for physical goods receipt: Description Discrepancies with goods are resolved offline, released to Unrestricted Stock Release Blocked Stock Financial Implication Full financial posting Invoice processing Three-way match 36

37 Movement Types for Physical Goods Receipt The following movement types are used for physical goods receipt: Description Goods receipt due to error or other valid reasons (not including return to vendor) Reversal of Goods Receipt Financial Implication Varies depending on receipt movement type 37

38 Movement Types for Physical Goods Receipt The following movement types are used for physical goods receipt: Description Goods need to be returned to vendor Financial Implication Varies depending on receipt movement type Return to Vendor 38

39 Putting it Together: Goods Procurement The steps for performing a virtual or physical goods receipt are summarized below: Virtual Goods Receipt Vendor provides delivery update Inbound Coordinator Inbound Delivery Update Vendor delivers at origin or other named place Inbound Coordinator Check Delivery Documents Inbound Coordinator Inbound Delivery Update Virtual Receiving User Check Delivery Documents Virtual Receiving User Virtual Receipt Physical Goods Receipt Vendor provides delivery update Inbound Coordinator Inbound Delivery Update Vendor delivers at destination Receiving User Check Delivery Documents Receiving User Check for Discrepancy Receiving User Physical Receipt Galileo Interface Continue Receiving Process in Galileo 39

40 Putting it Together: Receiving User Decision Specifically for the Receiving User, the following decision needs to be made when the goods arrive at the receiving mission location. Yes This means a virtual goods receipt was already done I only need to receive the goods in Galileo Have the goods already been received in Umoja ECC? No This means I need to do a physical goods receipt I need to receive the goods in Umoja ECC, using the correct movement type Then, I need to receive the goods in Galileo 40

41 Reports There are several key reports used across the Umoja Logistics process. Some are introduced in this course, while others are detailed in the Level 3 course. Inbound Delivery Report The user generates a daily report that displays all inbound deliveries at the mission/location. This provides delivery dates and corresponding shipment information/documentation. Purchase Order Report The user can generate a list of PO s by PO number for a mission/location. This allows the user to find the status/details of a particular PO. Other variations of this report allow views (for example, by vendor or by material). Material Document Report The user can generate a list of material documents (Goods Receipts) that have been posted by material or multiple materials. From the output list, the user can search for and display a particular material document. 41

42 Learning Checkpoint 1 When goods are placed at the disposal of a UN-designated freight forwarder, which tasks are performed by the Virtual Receiving User in Umoja? Select the correct option. A. Virtually receive goods to indicate transfer of ownership to UN B. Barcode and update received batches, as applicable C. Perform a quality inspection of materials D. Create inbound delivery 42

43 Learning Checkpoint 1 When goods are placed at the disposal of a UN-designated freight forwarder, which tasks are performed by the Virtual Receiving User in Umoja? Select the correct option. A. Virtually receive goods to indicate transfer of ownership to UN B. Barcode and update received batches, as applicable C. Perform a quality inspection of materials D. Create inbound delivery Option A is correct. The Virtual Receiving User virtually receives the goods to indicate transfer of ownership to UN. 43

44 Learning Checkpoint 2 Which documents are cross checked during the three-way match? Select the correct option. A. Inbound Delivery, Sales Order and Goods Receipt B. Inbound Delivery, Purchase Order and Invoice C. Purchase Order, Sales Order and Goods Receipt D. Purchase Order, Invoice and Goods Receipt 44

45 Learning Checkpoint 2 Which documents are cross checked during the three-way match? Select the correct option. A. Inbound Delivery, Sales Order and Goods Receipt B. Inbound Delivery, Purchase Order and Invoice C. Purchase Order, Sales Order and Goods Receipt D. Purchase Order, Invoice and Goods Receipt Option D is correct. Three-way match cross checks the PO, Invoice and Goods Receipt. 45

46 Agenda Course Introduction Module 1: Umoja Logistics (Inbound Goods Process) Course Summary Course Assessment Course Survey 46

47 Course Summary The key points covered in this course are listed below: The Inbounds Goods process involves the tracking of inbound goods movement and, upon receipt, basic verification to affirm that goods being received conform to the PO/contract The Umoja system will ultimately replace the Galileo system. However, due to the provisional retention of Galileo, the two systems will coexist Umoja ECC s three-way match functionality allows the comparison of quantities, price per unit, terms etc. appearing on the vendor s invoice, with the information on the PO and Goods Receipt Umoja introduces the concept of inbound delivery, which is a system-generated document used to update delivery details Inbound delivery process provides visibility of the shipment status to all stakeholders 47

48 Agenda Course Introduction Module 1: Umoja Logistics (Inbound Goods Process) Course Summary Course Assessment Course Survey 48

49 Course Assessment Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment. To receive credit for completing this course, you must pass this assessment with a minimum score of 90%. To complete the assessment you must return to the Learning Management System: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click on the Start link of the course assessment 5. Click the Submit button once you have completed the assessment 49

50 Agenda Course Introduction Module 1: Umoja Logistics (Inbound Goods Process) Course Summary Course Assessment Course Survey 50

51 Course Survey Your feedback is important to the continuous improvement of our training program. Please complete the evaluation for this course using the following steps: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click on the Start link of the course survey 5. Click the Submit button once you have completed the course survey 51

52 Congratulations! You have successfully completed the Umoja Logistics Overview (Inbound Goods Process): PK & SPM course. 52