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PROCUREMENT PANEL Kirsten Keller, ERP Finance Functional Lead, APS Ah-Young Moon, IT Specialist , Montgomery County Laleh Shabani, AP Specialist, Montgomery County Robert Foushee, Procurement Specialist, Oracle
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Program Agenda
Arlington County Public Schools
Montgomery County
Procurement Director’s Roundtable and Case Study
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Arlington Public Schools, Virginia www.apsva.us
• Kirsten Keller, ERP Finance Functional Lead –Department of Information Services,
Enterprise Applications –Support finance, procurement, and
budget functions in EBS –Project Management Professional –Oracle Certified Payables
Implementation Specialist
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Arlington Public Schools, Virginia
• Software we own: –E-Business Suite (v 12.1.3)
• Purchasing, iProcurement, iSupplier Portal • General Ledger, Payables, Receivables,
iExpense • HCM, Payroll, OTL
–User Productivity Kit
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Arlington Public Schools, Virginia
• 4200 employees • 2500 temporary/hourly workers • 9 Departments • 35 schools
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We will cover…
• Purchase Order Creation process –Challenges we faced –Changes we made
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Challenges we faced
• Requisition/PO required for most purchases –Contract and Blanket Purchase Agreements (30%) –Non-Catalog Requests (70%)
• Buyers are centralized, small staff • ~60% of manually created POs are under $1,000
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Challenges we faced
• Standard Oracle workflow will automatically create and approve POs for contract/blanket agreements
• Non-catalog requests are not picked up for automatic approval
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Problem & Solution • Modified workflow to autocreate & approve PO for non-catalog requests
– PO Create Documents kicked off during requisition approval – If requisition lines meet criteria, PO created and approved
• Flexible solution – system profiles – Turn on/off – Set requisition total dollar limit – Default Suggested Buyer
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Problem & Solution
• Require Supplier Name and Site fields • Require Suggested Buyer field on
iProcurement forms • Change Account – defaults from
employee and selected category • Descriptive flexfield to flag “change
orders” • OAF personalizations to add helpful
text
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Problem & Solution
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Problem & Solution
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Problem & Solution
• Email POs to vendors when at all possible • Report to identify auto-approved POs and
attachments • Vendor spend report by buckets
– POs / Direct Pays / Procurement Card – Shared with end users
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Problem & Solution
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Problem & Solution
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Problem & Solution
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Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Program Agenda
Arlington County Public Schools
Montgomery County
Procurement Director’s Roundtable and Case Study
1
2
3
Oracle Confidential – Internal/Restricted/Highly Restricted 17
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Montgomery County, Maryland Department of Finance Division of Controller www.montgomerycountymd.gov
Ah-Young Moon, IT Specialist • Data analysis and technical
support for Finance • ERP Technical Team: Data
Conversion, GL Interface, OBIEE, Hyperion Planning
Laleh Shabani • A/P Manager at County for
7.5 years • 9 years at Sprint-Nextel prior
to MCG
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Montgomery County, Maryland
• Software we own: E-Business Suite (v 12.1.3)
o iProcurement, iExpense, iSupplier, OBIEE, Hyperion Planning, Enterprise Asset Mgmt, Central Inventory, Property Mgmt
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• 10,000 FTE employees, 37 Departments o In FY14, 150 preparers processed:
8000 RQ $870M 4300 Direct PO $240M 6900 Standard PO $650M 100 Retainage PO $200M
o In FY14, 275 AP clerks processed: 154,000 manual invoice entry lines 50% matched to PO Departments can approve invoices <
$10K
Montgomery County, Maryland
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• GL to Purchasing encumbrance reconciliation process o Challenges we faced o Problems identified during the
reconciliation o Business process changes we’ve
made to work around the issues or reduce number of errors going forward
We will cover…
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• Lack of PO distribution balance report that is as of a GL date (e.g. 6/30/2014) o To reconstruct PO balances, needed data sets
from multiple subject areas: a) BI PO summary data for current balances b) BI AP invoice distribution for invoices
processed between as of date and now c) BI GL carryforward adjustments d) BI GL encumbrance accrual entries
Challenges we faced
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Challenges we faced
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1. GL encumbrance balance at the PO number level: • Transactions created from subledgers have PO
reference numbers (ie. SLA from Purchasing, AP, Auto-Accruals)
• JE’s done directly in GL do not have PO number association o JE’s are done for manual accrual, system
auto-accrual reversals/fixes, cross-fiscal year cancellation entries (commitment, invoice, obligation), other misc data fixes
Problem & Solution
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Business process improvement: • Enabled a DFF field in encumbrance JE lines • Modification to WebADI template • BI to pull PO reference number for all journals
Wish list: • All transactions and data fixes to be done at
the source module and not directly in GL • System auto-accrual for CIP and Grant funds
need to interface through PnG
Problem & Solution
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2. Uninvoiced over-received amounts • System auto-accrual is based on GL date • Purchasing and AP modules stay open until 3rd
week in July • Receipt creations can be GL back-dated but
corrections cannot be back-dated • Liquidations can be GL back-dated
Problem & Solution
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Business process improvement: • Enhanced uninvoiced receipt report • Send list to each department for review • Automatically correct over-receipts unbilled for
more than 3 months Wish list:
• Be able to GL date the receipt corrections • Reduce number of Open periods
Problem & Solution
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3. Split distribution PO lines with offsetting +/- balances that net to $0 • Invoice control is at the line level. System
allows user-overrides at the distribution level.
Problem & Solution
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Business process improvement: • Disabled (hidden) split distribution
functionality from RQ and iProcurement screens
• Departments can still meet their needs by creating multiple lines
Wish list: • Be able to enforce controls at the line
distribution level and not at the line level
Problem & Solution
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4. Other data issues identified during the reconciliation: • PO Amount Billed showing incorrect sum of
invoices • Encumbrance variances on cancelled invoices
(and application of it on subsequent invoices) • QTY unit price overrides at the invoice lines • PO revision made but no SLA generated • Credit memo cancellation after PO is closed
Problem & Solution
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Business process improvement: • Many of the issues are caused by user errors or
lack of system controls o Shifting from decentralized environment to
centralized/shared service model Pilot is underway with 3 departments
o Provide more year-end training classes and targeted refresher courses throughout year
o Mass liquidation process (+ ad hoc) to reduce number of carryforward encumbrances
Problem & Solution
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
Program Agenda
Arlington County Public Schools
Montgomery County
Procurement Director’s Roundtable and Case Study
1
2
3
Oracle Confidential – Internal/Restricted/Highly Restricted 32
Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |
City of Nashville: Case Study
– Jeff Gossage, Purchasing Agent, City of Nashville
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City of Nashville: Solution • EBS Adv Procurement Suite:
12.1.3 Purchasing iProcurement iSupplier Portal Supplier Lifecycle
Management Sourcing Services Procurement
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City of Nashville: Results • Solicitation-to-contract cycle
reduced from ~70 days to just 32 days
• Standardized contract documentation
• Improved city and county-wide transparency
• Standardized processes, from solicitations to contracts, for city construction, commodities and services
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City of Nashville: Benefits • Procurement Division drives
the process rather than being a bureaucratic hurdle
• We provide a higher level of service to our clients & suppliers
• We can concentrate on cost savings & avoidance, risk mitigation, and improved quality
• Manage by KPI not crises Oracle Confidential – Internal/Restricted/Highly Restricted 36
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City of Nashville: Q&A
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