SUPPLIER EDUCATION PACKAGE (US ONLY)

Transcription

1 SUPPLIER EDUCATION PACKAGE (US ONLY) --- How to Issue IBM Invoice Jan 8 th,2013

2 INTRODUCTION Background Recently IBM receives bunch of invoices being blocked. In order to ensure payments on time and avoid more blocks/rejections, this package is designed to provide some guidelines on how to issue an invoice accepted by IBM. Overview 3 common blocked/ rejected reasons are listed below, needing suppliers special attention. Clarifications will be presented in following slides. PO & Invoice Items Mismatch Invoice Duplicates PO & Invoice Time-frame Mismatch

3 COMMON ISSUE 1 1. Ensure PO & Invoice Items Match Supplier needs to Ensure Quantities (QTY) Match - Pls ensure total invoiced QTY NOT exceeding the PO particular line item stated QTY Ensure Net Prices Match - Pls ensure invoiced rate NOT higher than the PO particular line item stated net price Submit Invoice to PO correct line item - State/Input correct PO line item as the way PO sets up accordingly SAMPLE Clarification: PO is set up for 7 PC at net price of $1018 on line item 1, 8 PC at net price of $989 on line item 2, 67 PC at net price of $1526 on line item 3. Invoice is billed on PO line item 1 with 8 PC (total amt $7520), line item 2 with 67 PC (total amt $102242). Obviously, the submitted invoice above is now blocked due to both Qty and Net price exceeds PO. Correction: This invoice needs to be re-submitted against correct line item 2 and item 3, where both quantity and net price totally match. Please submit invoice according to how the PO stated on item level.

4 COMMON ISSUE 2 2. Ensure NO Invoice Duplicates Supplier needs to If vendor is E-enabled supplier, please submit only E-invoice, do not submit both E-invoice & paper invoice. Please do timely raise Credit Memo to offset previous invoices which incurred by wrongly delivered or defective products. SAMPLE Clarification: IBM PO requester ordered only 1 product, while two invoices were charged and caused duplicates. After investigation, the previous one on 10/11/12 was for the wrongly delivered/ defective product that shouldn t be paid and the second one on 11/13/12 was for the valid product that can be paid. Correction: Please issue Credit memo to offset the previous one on 10/11/12 BEFORE invoicing the second one on 11/13/12. Please pre-check product before delivery; offer return introductions for PO requestor to ensure wrongly delivered/ defective product be returned back.

5 COMMON ISSUE 3 3. Ensure Service PO & Invoice Time-frames Match Supplier needs to Ensure Invoice Time-frame covered by service PO Don t Forget to correctly indicate Service Date on Invoice SAMPLE Original PO Renewal PO Billed Invoice Clarification: The original PO, time frame is 7/15/2011-7/31/2012. The renewal PO in place, time-frame is 10/01/ /31/2013. The invoice being billed, time-frame is 10/26-11/16. Obliviously, the invoice timeframe overpasses the original PO's. The renewal PO is generated to replace and cover the future invoice time-frame. Correction: Please resubmit the invoice against renewal PO, where invoice billing period could be covered. If no idea of the renewal PO#, Please contact IBM PO requester for the renewal PO# and resubmit the invoice to the renewal PO for payment. If the invoice time-frame shows between original old PO and the renewal PO, please separate the invoice into 2:one to balance the old PO and the left to be against renewal PO for payment.

6 ADVICES TO AVOID BLOCKED INVOICES & PAYMENT DELAYS When finding invoices blocked, please take care of it, and reach to the right contact person for help if needed. Blocked Invoice Issue -> IBM PO Requestor / Buyer Payment Issue -> IBM Accounts Payable ( ) Pls kindly hold more invoices to be submitted until the current blocked invoice issue has been totally resolved to keep from more blocks. If contract billing rate increases, please inform IBM to amend PO ahead accordingly, and then bill invoice to avoid invoice being returned back due to rate mismatch. If receiving RTV notice with RTV code "904", please do NOT continue billing against that incorrect PO # repeatedly and should refresh your PO data file with the correct /renewal PO. Please start to use correct/renewal PO # to charge or kindly hold invoice until you get the renewal PO#. To avoid payment delay, Pls do check PO balance before you submitting invoices, once find funds or hrs falling short, pls hold your invoice and request IBM representative replenish the PO firstly. Submit invoices TIMELY with correct information. No error, no delay.

7 THE END Thank you!