ACCOUNTS PAYABLE Business Case Review. 2 Check and Single Pay Card Export Owners Overall Process & Policy Change OwnersMelanie Widmer Module OwnersCarol

ACCOUNTS PAYABLEBusiness Case Review

2

Check and Single Pay Card Export

Owners

Overall Process & Policy Change Owners Melanie Widmer

Module Owners Carol King

Project Work Owners Carol King

OVERVIEW: Emory would like to pursue a proposal from JPMC (JP Morgan Chase) to use Single Payment Cards due to the rebates available and to provide payees with an additional, faster payment method that is beneficial to both Emory and the supplier. While this method may not be acceptable to all suppliers, it does provide another viable payment option, especially for smaller vendors or one-off payments. Emory would also like to evaluate the benefits of outsourcing check printing to realize benefits of additional relationships and payment methods the source provider may have with vendors.

RECOMMENDATION: Create new payment methods and related enhancements to allow outsource printing of checks and allow for single payment cards. In addition, a printer should also be purchased and setup internally for low-volume, emergency type payments, as recommended via lessons learned from other institutions who have outsourced as well. For vendors who insist on checks, consider charging a discount % to be automatically taken at time of payment to pay for check printing services, thereby encouraging use of preferred payment methods (ACH, Single Pay Cards).

3

Check and Single Pay Card Export Impacts

People Module Support

Central Administration The number of printed checks will decrease as vendors shift to other preferred electronic payment methods in lieu of paying the check fees; resources could then be allocated to other AP activities of a more proactive nature, such as vendor validation, invoice validation, etc.

Campus Users

Process Module Support

Central Administration The effort of printing checks and printer maintenance would be the selected vendors responsibility

Potential rebates for adoption of Single Pay Card payment

Campus Users Additional turnaround time maybe required for checks which need special handling (such as hold for pickup or attachments required) as they would have to be sent from printing vendor back to Emory (even overnight delivery, unless courier services are provided by the check printing vendor) would require an extra day to receive the checks due to processing and shipping schedules

System Module Support

Central Administration Emory would still need an emergency check printing solution, and an appropriate, secure location to house the printer and check stock (low volume, inexpensive solution)

Campus Users

Training Module Support

Central Administration Train AP staff on new payment methods and impact to vendor setup and vouchers, new check process and entire process so they can answer vendor questions

Campus Users

4

Payment Request

Owners




OVERVIEW: Emory needs the ability to easily enter requests for payments that are not PO related items, such as Honorariums, Speaker Fees, etc. Emory currently has a custom solution to handle Payment Requests, which involves changes to the delivered voucher pages and the use of a 3rd party product called SmartWorkflow, both of which make it difficult to apply patches/fixes to the software. In addition, the current solution causes many calls into AP for assistance, due to errors with workflow, errors with budget checking, general user errors due to the design, requests for payment status, etc. This takes a considerable amount of time within AP to support this custom solution. Payment Request functionality was one of the most discussed items during the listening tour. There were many requests for enhancement and for an easier, more user friendly solution.

Payment Request functionality is now delivered in 9.2 via a new process, specifically designed for Payment Requests. It was designed specifically for Payment Requests in a widespread, end user community similar to Emory’s environment. It uses a stepped approach to guide the user through entry, and comes delivered with pages to monitor the status of the request as it goes through processing. However, it will still require some minor enhancements to meet Emory specific requirements related to Foreign Nationals, ability to enter a Payment Message, ability to set special check handling (such as hold for pick-up), and to display payment information without requiring multiple, complex steps to find the information (none of these are currently part of the delivered functionality).

RECOMMENDATION: Implement the new 9.2 Payment Request functionality, with the goal of leaving it as delivered as possible. Minor enhancements, which should be made, include: 1) Handling of Foreign Nationals 2) Ability to add a payment message 3) Ability to set payment handling (such as hold for pick-up) 4) Speed Chart functionality (depending on final design) 5) Display of Voucher ID and Payment Status; enhance security to allow for managers to see requests within their area.

5

Payment Request Impacts


Central Administration Reduced call volume and support due to customizations issues/support (budget check, hung transactions, etc.)

Reduced time spent due to lack of self service (delete requests).

Eliminates issues with Foreign National flag when updating invoices.

Campus Users Less frustration due to stepped approach of delivered functionality.

Ability to do self service: cancellations, payment status, etc.

Process Module Support Uses delivered workflow components specific to Payment Requests

Central Administration Easier visibility into payment requests (separated from normal invoice issues).

Campus Users Allow Self Service and tracking through the lifecycle of the request: New, Pending, Approved, Vouchered

System Module Support Delivered functionality, new in 9.2, meets the majority of Emory business needs

Removes some Security concerns related to hard coded roles

Central Administration

Campus Users Limits user visibility to only their payment requests



Campus Users Will need to train users on new pages/process; it’s fairly intuitive, but needs good training to ensure users understand the business process as well as the pages.

6

Supplier Audit

Owners




OVERVIEW: Currently, Emory has no automated field level audits in place for changes made to the supplier (vendor) master. While the system does record who added the supplier, and also records who last changed (or approved) the supplier, and suppliers do go through an approval process, there is no tracking of specific changes. From a controls and audit standpoint, we should be able to identify: 1) what changes have been made to the supplier 2) when the changes were made to the supplier 3) who made the change to the supplier.

In prior versions, a technical resource could turn on vendor auditing, but it required creating audit records manually. There were no delivered inquiries or reports to report the captured information and the format of the data made it hard to interpret. In PeopleSoft 9.2, the Financial Audit Trail has been extended to include the Supplier, and a configurable, reportable solution is now available.

RECOMMENDATION: Implement newly delivered Supplier Audit Trail functionality as part of 9.2 upgrade to reduce risk exposure (operational), provide audit trails, aid in research on vendor issues, and provide valuable information for Procure to Pay management.

7

Supplier AuditImpacts


Central Administration Records additions and changes by user, which can be used for valid metrics in setting performance goals

Campus Users

Process Module Support Likely only tracks changes made online (batch changes on HealthCare suppliers are likely not tracked as they are automated feeds and changes would be expected to be tracked in source system)

Central Administration Provides historical data for researching changes to supplier addresses, payment methods, banking information, etc. to aid AP/Procurement staff is analyzing issues/questions. Provides data to use in metrics for measuring employee performance.Provides details during the approval process on what changed and why it is being changed (where configured).

Campus Users

System Module Support May have some minor system impact on performance within the Supplier component (no real issues expected; should be negligible)

Central Administration Provides audit trail for internal and external audit needs

Campus Users


Central Administration Appropriate AP and Procurement users will need to be trained on the use of the Supplier Audit Inquiry and Reporting in order to be able to research questions

Campus Users

8

Vendor Name Audit

Owners




OVERVIEW: In today’s current system, changes to Supplier (Vendor) names have no specific tracking mechanism, as for date of the change or who made the change. Additionally, there is no way to track historical changes. Any changes to Supplier Names (Name, Alternate Name can have ramifications for 1099 reporting, as well as OFAC validation). Changes should be tracked, which can be accomplished via Supplier Audit, but a historical record of the changes should also be tracked in an easily identifiable method.

There’s no other way to enter a future name change without the use of this new feature; instead, AP must manually note the change and remember to return to the system on the effective date to make the change manually. The new Supplier Name history functionality supplies this capability, and is helpful for internal and external audit, as well as for use in researching 1099 and other Supplier related issues.

RECOMMENDATION: In PeopleSoft 9.2, a new process is delivered to track the history of supplier name changes. Fields tracked include Supplier Short Name, Supplier Name 1, and Supplier Name 2 fields. Emory needs this information to for both audit and issue research purposes. Vendor names may change over time, either due to errors which require correction or just due to the vendor changing the name of their company. Emory should turn this new feature on, via configuration, as part of the 9.2 upgrade, and train those with Supplier update privileges, as well as those who may need to research name changes, on how to properly use the new functionality.

9

Vendor Name Audit

Impacts


Central Administration Provides audit trail specifically for Supplier Name changes

Campus Users


Central Administration Allows for entering future dates name changes when a supplier notifies us in advance of a name change

Provides audit information on name changes

Campus Users

System Module Support Need to evaluate future dated trans for potential impacts on SciQuest Supplier Export to ensure updates are processed to SciQuest

May require additional customizations or manual procedures to ensure changes get to SciQuest; will be included in rebuild of Supplier Export

Central Administration Audit trail

Campus Users


Central Administration Train PO/AP staff on how to properly maintain supplier name and how to research supplier name history

Campus Users

10

Supplier Hierarchy

Owners




OVERVIEW: AP Management desires the ability to easily identify Supplier (vendor) information via an overview, or snapshot, of the overall supplier information without going through several system components to get different types of information. This can be accomplished by using the new Supplier Hierarchy functionality, which provides quick access, with limited navigation to various summary items on the supplier, with the ability to drill down to get more information (in most cases). Helpful items include: • Supplier data item information (last update/modified summary, remit address info, various status fields, etc.) • Supplier data field information (current balance, overdue payments, scheduled payments, discount taken, aging balance, recurring voucher

released amount)• Supplier Relationships (parent/child hierarchy if defined) in a graphical format This will be helpful when trying to research supplier questions

or when internal questions arise related to a supplier’s current status/balance.

RECOMMENDATION: Implement Supplier Hierarchy, which is introduced in PeopleSoft 9.2 and leverages the existing parent/child relationship functionality of the supplier while adding a graphical representation of the supplier relationship within the group as well as a rollup of the supplier exposure. This requires only minor configuration and provides the ability to link multiple vendors to the same corporate parent when needed. Primary benefit is additional functionality which provides a single point to obtain many different pieces of Supplier data in a single place, rather than navigating through multiple menus.

11

Supplier Hierarchy

Impacts


Central Administration Provides a quick overview of a suppliers current status, standing, balance, etc.

Better ability to research/monitor issues/questions related to suppliers

Campus Users Better ability to research/monitor issues/questions related to suppliers


Central Administration Allows for navigation/drill down to specific areas of interest or concern

Campus Users

System Module Support

Central Administration Allows AP management to easily review current status of valuable suppliers or suppliers of concern

Campus Users


Central Administration Train AP staff on how to use the Supplier Hierarchy and train AP supplier update staff to list parent/child relationships when/if appropriate

Campus Users Some users may have a need for this functionality and would need training (TBD due to security concerns)

12

Vendor Validations (Financial Sanctions/SAM)

Owners

Overall Process & Policy Change Owners Loette King & Melanie Widmer



OVERVIEW: For U.S.-based companies and their foreign subsidiaries, a federal regulation from the Office of Foreign Assets Control (OFAC) requires that suppliers be validated against a Specially Designated Nationals (SDN) list prior to payment. The process in PeopleSoft to facilitate this check is called Financial Sanctions Validation. This check should be done early in the process, such as when setting up a new supplier, as well as other places in the Procure to Pay Cycle to continually check against the list as it may change frequently. Emory would like to implement the PeopleSoft delivered Financial Sanctions Validation functionality to perform this check when setting up new suppliers, as well as when vouchering invoices. Use of this functionality will flag a vendor that is on the sanctions list, and will hold up transactions for review until they can be fully vetted.

The Federal government also requires validation of vendors receiving Federal Funds, such as those on grants or research which are funded by the US Government. The US Federal Government General Services Administration (GSA) developed software called System for Award Management (SAM) which maintains a list of federally registered vendors/contractors and their status with the federal government. This has to be checked on an on-going basis to verify that funds are only going to federally approved vendors (or, in reality, not going to vendor which the government has flagged). This was formerly known as Central Contractor Registration (CCR) and Federal Registry (FedReg) which have been combined into SAM. This validation needs to be automated, and is provided in PeopleSoft 9.2.

RECOMMENDATION: Implement the delivered PeopleSoft Financial Sanctions at the Installation Level, which will allow for sanction validations to be done on various transactions within PeopleSoft. Emory should use Visual Compliance as the validation source using web messaging to provide the most comprehensive, real-time check available. This is delivered functionality, but will require configuration and testing. There may be some minor customization to the web methods layouts for the interface with Visual Compliance, but all the hooks to support the web method are delivered. Alternatively, Visual Compliance could provide a file for loading into PeopleSoft, but the web method is recommended as it provides checks against the latest updates and is also a more cost effective method to use. Additionally, automated SAM validation should also be implemented for checking certifications of vendors which may be paid using federal funds

13

Vendor Validations (Financial Sanctions/SAM)

Impacts


Central Administration Time savings when setting up new suppliers due to automating validation for Financial Sanctions and SAMS

Campus Users


Central Administration Automatically validates vendors on a scheduled basis or prior to any payment, ensuring the latest information is used to validate prior to making payment

Speeds up supplier setup by reducing time intensive manual steps

Campus Users SAMS validation for suppliers paid using government funds (grants, etc.)

System Module Support Reduces number of attachments in system, thereby reducing system load

Support interface with Visual Compliance and SAMs (monitor)

Central Administration Should increase system response time due to elimination of some of the attachments (during set up only)

Campus Users


Central Administration Train AP on how to handle validation exceptions (those flagged for review)

Campus Users

14

AP Dashboard

Owners




OVERVIEW: In today’s environment, AP Management currently has no automated analytics to assist them with monitoring day to operations easily. With the release of PeopleSoft 9.2, an AP Operational Dashboard contains features which provide this capability which AP Management believes will help to fill this need and allow for more pro-active, versus late reactive, responses to operational issues, such as discounts lost, overdue payments, missed pay cycles, etc.

RECOMMENDATION: Configure AP Operational Dashboard for use to provide AP Management with an operational overview, allowing them to proactively manage before issues arise.

15

AP Dashboard

Impacts


Central Administration Better able to monitor daily status and take earlier action on processing issues before they become major issues

Campus Users


Central Administration Provides AP Management with easy, visible access to operational metrics, allowing them to easily monitor operations and remediate issues in a timely manner (such as Discounts Lost, Past Due Aging)

Campus Users

System Module Support Does require some scheduled (evening) jobs to process data for operational reporting (should be minor)


Campus Users


Central Administration Train AP Management on use of pagelets within Dashboard

Campus Users

16

Procurement Card

Owners

Overall Process & Policy Change Owners Loette King

Module Owners Carol King, Finesha Colton-Lee


OVERVIEW: Currently, Emory is using J.P. Morgan as their procurement card supplier and is using J.P. Morgan’s PaymentNet as their procurement card reconciliation system. PaymentNet is a system provided by J.P. Morgan. This system is external to Emory and requires a separate login and password. It has a completely different interface than other systems in use at Emory.

One of the significant pain-points of the system is the fact that J.P. Morgan will remove older, unreconciled items from the system, making it extremely difficult and resource intensive for Emory to gain access to such transactions. Emory has contacted J.P. Morgan about this issue, and the response is that this is done for “performance reasons” and won’t be changed. Emory wants these transactions to be available until such time they are reconciled. Additionally, many questions arise due to the unique way to access the system (external system) as well as due to the ID and passwords being outside of Emory’s PeopleSoft system. Users frequently forget those details, which results in a lot of administrative effort to assist them with setting up account, password resets, and general instruction.

RECOMMENDATION: Implementing the Procurement Card functionality within PeopleSoft will eliminate the need to have a separate ID and sign-on, as PeopleSoft users can use single sign-on. Additionally, many users are already trained in using PeopleSoft, so navigation and general look and feel of the application will already be familiar to users. The Procurement Card functionality within PeopleSoft will retain all of the transactions, regardless of how old or if they have/have not been reconciled. Existing accounting rules are enforced and daily manual interfaces are eliminated. Should help remove barriers to reconciliation, resulting in higher compliance while reducing errors.

17

Procurement CardImpacts

People Module Support Technical: Support will be moved from J.P. Morgan Mapper/Tech support to PeopleSoft; should be a “wash” with no added costs anticipated, and could actually require less time

Functional: Support will be moved from JPM PaymentNet support to PeopleSoft; some work will still need to be done with J.P. Morgan, such as for disputes or requesting new cards. Will require less time or will allow for more proactive work due to fewer user questions and automated notifications for non-reconciled transactions which are late.

Central Administration Reduction in assistance for lost passwords/IDs; reduced time to research old transactions removed from PaymentNet; improved accounting edits at time of entry; automated entries to GL

Campus Users Able to use their Emory Single-Sign-on AccountsAnother system to go to

Process Module Support No password resets due to Single Sign-on

Monitor automated feed/import of card transactions

Central Administration Chartfield edits performed using existing Compass Rules and chartfield changes available immediately (no interface needed)

Automated notifications

Campus Users Reconciliation performed within Compass using rules maintained within Compass

System Module Support Security within Compass

Central Administration Could send data to warehouse; easy access in Compass

Campus Users Single Sign-on



Campus Users Will need to retrain existing users.

18

Vendor Attachments

Owners




OVERVIEW: Currently Emory uses a customization to the Vendor component, using a bolt-on custom page called Attachments, to add attachments to a vendor. These attachments are maintained on a custom table. As part of the upgrade, Emory would like to move to using new delivered functionality. While this is primarily a training task, it will require a custom migration script, to be executed at time of upgrade, to move the attachments from the custom table to the delivered tables so that existing attachments can continue to be accessed and maintained using the delivered functionality.

RECOMMENDATION: PeopleSoft version 9.1 introduced attachments for Suppliers (Vendors) at the Supplier and Supplier Location levels. Emory will use this functionality to replace their existing Vendor Attachment custom page. Once an attachment is added, it becomes part of the supplier. It is recommended that users give the attachment an appropriate description so that users can identify what the attachment contains without having to open it first.

19

Vendor Attachments

Impacts


Central Administration Ability to identify time/date for attachments, results in efficiencies during the vendor approval process for changed vendors

Ability to add description of attachment makes it easier to identify documents for research as well as approvals.

Campus Users


Central Administration Time/Date available on attachment

Descriptions available on attachments

Campus Users

System Module Support No time required for applying system updates as there is no customization to maintain

One time cost to convert transactions from custom tables to delivered tables (primary cost of this case)

Central Administration Better audit capabilities for attachments (time/date)

Campus Users


Central Administration Train AP staff on how to properly maintain supplier attachments

Campus Users

Documents

ACCOUNTS PAYABLE Business Case Review. 2 Check and Single Pay Card Export Owners Overall Process & Policy Change OwnersMelanie Widmer Module OwnersCarol