MyFloridaMarketPlace Electronic Invoicing (eInvoicing) Overview
October 14, 2010(888) 808-6959, Passcode 9766076#
Agenda
MFMP Overview What is eInvoicing
Benefits Methods to eInvoice Ariba Supplier Network (ASN) Return on Investment (ROI) eInvoicing summary
Vendor Tools Electronic Funds Transfer (EFT) Automated Clearing House (ACH)
Resources Contact Us
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Agenda
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MFMP Overview
MyFloridaMarketPlace (MFMP) is the State of Florida’s online e-procurement system, the single e-commerce conduit between state agency buyers and vendors to conduct public purchasing on a daily basis.
Designed to streamline interactions between vendors and state government entities that purchase goods and services
Provides a user-friendly Internet portal where vendors can register, receive information on upcoming bids, post information on products and services, receive purchase orders electronically and submit invoices electronically
MFMP Overview
MFMP Overview
We at MFMP pride ourselves on public and private partnerships; our award-winning technology applications create easier and faster transactions for both buyers and vendors.
Excellence in IT Leadership Award from IT Florida Excellence in Public Service Leadership from IT Florida Honorable Mention given by the National Institute of Governmental
Purchasing Achievement for Excellence in Procurement (2004, 2005, 2006,
2007, 2008, 2009, 2010) ComputerWorld Laureate 2008
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MFMP Overview
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MFMP Overview
MFMP Vendor Benefits Equal access for small-, disabled-veteran, women- and minority-owned
businesses Electronic Invoicing (eInvoicing) 24/7 access to more bid opportunities and information
Vendor Bid System (VBS) Sourcing eQuote
Improved quality and accuracy of interactions with the state Customer service support available to provide real time assistance Green catalog and product listing options
MFMP Overview
Agenda
MFMP Overview What is eInvoicing
Benefits Methods to eInvoice Ariba Supplier Network (ASN) Return on Investment (ROI) eInvoicing summary
Vendor Tools Electronic Funds Transfer (EFT) Automated Clearing House (ACH)
Resources Contact Us
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Agenda
eInvoicing
eInvoicing is presenting an invoice electronically to agencies for payment.
eInvoicing enables vendors to conduct business in a more cost effective way that automates and streamlines some processes.
eInvoices are audited and approved electronically through MFMP.
Vendors are able to monitor invoices’ approval flow for tracking.
Any invoice disputes are electronically returned to vendors.
No paper is submitted to the agency for payment processing.
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eInvoicing
Agenda
MFMP Overview What is eInvoicing
Benefits Methods to eInvoice Ariba Supplier Network (ASN) Return on Investment (ROI)
Vendor Tools Electronic Funds Transfer ACH
Resources Contact Us
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Agenda
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Vendor Benefits to eInvoicing
Reduce costs: Create, present, manage, and archive invoices electronically, eliminating the need for paper documents and associated printing and shipping costs.
Save Time: Eliminate the production of print invoices and time spent preparing documents for mail.
Manage more effectively: Create invoices that automatically reconciles orders, invoices, payments, and related key documents associated with the financial supply chain.
Collaborate with less effort: Use fewer resources to collaborate with customers and track communications, documents, and payments.
Faster Payments: Encourages prompt and accurate processing of invoices by improving data accuracy which can reduce payment cycle times.
Green: Submitting invoices electronically does not generate paper.
Vendor Benefits of eInvoicing
Buyer Benefits to e-Invoicing
Faster Processing Times: eInvoicing saves a good amount of time for payment processing in accounts payable offices by eliminating manual processes such as manual data entry, reducing processing errors and payment cycle times.
Reduction in paper: eInvoicing substantially reduces paper flow and associated costs such as copying and filing.
Reduction in cost: eInvoicing reduces costs by eliminating manual audit, eliminating need to research for duplicate payments, and eliminating scanning requirements.
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Buyer Benefits to eInvoicing
Paper Invoices submitted for payment
Involves printing and mailing efforts Lose tracking control Involves scanning and recreating the invoice and shuffling paper
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Paper Invoices Submitted for Payment
eInvoices submitted for payment
Eliminates several activities including courier/mail and scanning processes
Allows for quicker receipt of invoice Invoice can be tracked systematically Improves data accuracy which reduces cycle payment times
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eInvoices Submitted for Payment
Agenda
MFMP Overview What is eInvoicing
Benefits Methods to eInvoice Ariba Supplier Network (ASN) Return on Investment (ROI) eInvoicing summary
Vendor Tools Electronic Funds Transfer (EFT) Automated Clearing House (ACH)
Resources Contact Us
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Agenda
Methods of eInvoicing
State of Florida vendors have multiple ways to provide state agencies electronic invoices via the Ariba Supplier Network (ASN)
PO Flip via the ASN
Straight Through Processing (STP)
Vendors can select the method that best meets their capabilities
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Methods of eInvoicing
Methods of eInvoicing
PO Flip via the ASN
Vendors submit invoices electronically via the ASN
Invoices are created directly from the ASN Inbox by simply “flipping”
the PO into an invoice
The PO Flip option does require manual intervention to flip the invoice
This option also does not require any special software or technical capabilities
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Methods of eInvoicing
Methods of eInvoicing
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Methods of eInvoicing- PO Flip
Login to Ariba Network
1. Login - Enter your ASN username and password.
Methods of eInvoicing
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Methods of eInvoicing- PO Flip
Go to Inbox
1. Inbox – Click on the inbox link to review new messages.
Methods of eInvoicing
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Methods of eInvoicing- PO Flip
Review Purchase Orders
1. Review – Look at the orders that have been sent to you from MFMP buyers.
Methods of eInvoicing
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Methods of eInvoicing- PO Flip
Review Purchase Orders
1. Inbox – Select an order by clicking on the order number.
Methods of eInvoicing
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Methods of eInvoicing- PO Flip
Review Order Detail
1. Review – Confirm information on the PO is correct.
2. Create Invoice – Click the Create Invoice link to create invoice.
3. Select – Click the Standard Invoice link.
Methods of eInvoicing
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Methods of eInvoicing- PO Flip
Invoice Entry Form
1. Complete Form – Enter your Invoice Number and any other pertinent information.
2. Click Next – Click the Next button.
Methods of eInvoicing
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Methods of eInvoicing- PO Flip
Invoice Entry Form
1. Complete Form – Update Part #, Quantity, Unit, or Unit Price and other fields as needed.
2. Click Next – Click the Next button.
For leased items use the Part# Field for Service Start and Service End Date
Methods of eInvoicing
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Methods of eInvoicing- PO Flip
Invoice Entry Form
1. Complete Form – Update fields as needed. NOTE: Do not input a Shipping Amount or Special Handling cost unless pre-approved to do so by the purchasing agency. Please refer to the original order for an existing line item for these such costs.
2. Click Next – Click the Next button.
Methods of eInvoicing
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Methods of eInvoicing- PO Flip
Invoice Entry Form
1. Review
2. Click Submit Button
Methods of eInvoicing
Straight Through Processing (STP):
cXML (commerce eXtensible Markup Language)
EDI (Electronic Data Interchange)
Requires special software or technical capabilities
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Methods of eInvoicing
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Electronic Invoicing Option Comparison
cXML
Scalability
Ease of Implementation
Speed to Implement
PO FlipEDI
Electronic Invoicing Option Comparison
High LowMedium
Electronic Invoicing Option Comparison
Agenda
MFMP Overview What is eInvoicing
Benefits Methods to eInvoice Ariba Supplier Network (ASN) Return on Investment (ROI) eInvoicing summary
Vendor Tools Electronic Funds Transfer (EFT) Automated Clearing House (ACH)
Resources Contact Us
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Agenda
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Ariba Supplier Membership
Electronically invoicing with MFMP is facilitated through membership in the Ariba Supplier Network (ASN)
The fee is only assessed if certain thresholds are met
Certified Minority Business Enterprises can apply to have the ASN Fees waived
1http://www.ariba.com/suppliermembership/en/smp_pricing.cfm
Ariba Supplier Membership
How to Register with ASN
Registering for the ASN allows vendors to create an electronic invoice online and send these invoices back to the state.
Basic Registration - Register at http://supplier.ariba.com and click on the "Register Here" button in the middle of the screen. Follow the on-line instructions. Note that basic registration requires a DUNS number. There are two ways to obtain a DUNS number: Online at http://www.dnb.com Over the phone by calling 1-888-814-1435
Additional information is available off of the vendor toolkit at http://dms.myflorida.com/business_operations/state_purchasing/myflorida_marketplace/mfmp_vendors/vendor_toolkit/ariba_supplier_network_asn
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How to Register with the ASN
Ariba Supplier Membership1
Membership fees are based on the transaction volume:
Buyer-supplier relationships with over $100,000 USD in transaction volume and
15 or more documents
Fees are assessed as a small percentage (0.1%) of volume Relationships with fewer than 15 documents or transaction volume
of less than $100,000 are exempt from fees
Fees apply to only the first $10M USD in qualifying transaction volume for any relationship
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1http://www.ariba.com/suppliermembership/en/smp_pricing.cfm
Ariba Supplier Membership
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Ariba Supplier Membership1
Annual qualifying volume >$10M will NOT be charged
Less than 1.2% of suppliers hit the cap of $10K
0.1%*$100,000 to $10M and 15+ documents sent
FREE< $100,000 USD
Fees Annual Volume Per Buyer-Supplier Relationship
Supplier Membership Program Fees
Quick Reference Table:
1http://www.ariba.com/suppliermembership/en/smp_pricing.cfm
Ariba Supplier Membership
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Example ASN Membership Fee Calculation Table1
VolumeDocuments
(POs & Invoices)Fee (USD)
Company 1 $25,000 15 $0
Company 2 $99,999 20 $0
Company 3 $150,000 121 $150
Company 4 $1,000,000 2,000 $1,000
Company 5 $7,000,000 8,500 $7,000
Company 6 $250,000,000 10 $0
Company 7 $250,000,000 110 $10,000
1http://www.ariba.com/suppliermembership/en/smp_pricing.cfm
Example ASN Membership Fee Calculation
Agenda
MFMP Overview What is eInvoicing
Benefits Methods to eInvoice Ariba Supplier Network (ASN) Return on Investment (ROI) eInvoicing summary
Vendor Tools Electronic Funds Transfer (EFT) Automated Clearing House (ACH)
Resources Contact Us
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Agenda
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Return on Investment
Using $20 per Invoice for manual paper processing and $5 per invoice for electronic invoicing (STP and PO Flip) we developed three case studies to identify possible savings based on Invoice volumes in MFMP.
A case study was developed for each of the following: High Invoice Volume / Large Company Medium Invoice Volume / Medium Sized Company Low Invoice Volume / Small “Mom & Pop” Company Certified Minority Business Enterprise (CMBE)
2 Forrester: Best Practices: Invoice-To-Pay Process Automation, November 19, 2008
Inefficient manual processing can cost $20 or more per invoice, but companies can cut this to $5 or less using electronic invoicing2
Return on Investment (ROI)
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Return on Investment
Volume/ Spend Data Invoices in FY 2008: 20,472Total Invoice Amount: $5,597,350 PO Spend: $7,173,831Estimated ASN Fees: $7,174
Invoicing CostsManual/Paper : $409,440Electronic : $102,360
Estimated eInvoicing Savings (Manual Costs- eInvoicing Costs) - ASN Fees
= $299,906
High Invoice Volume / Large Company
Return on Investment (ROI)
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Return on Investment
Medium Invoice Volume / Medium Sized Company
Volume/ Spend Data Invoices in FY 2008: 802Total Invoice Amount: $958,446 PO Spend: $1,204,160Estimated ASN Fees: $1,204
Invoicing CostsManual/Paper : $16,040Electronic : $4,010
Estimated eInvoicing Savings (Manual Costs- eInvoicing Costs) - ASN Fees
= $10,826
Return on Investment (ROI)
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Return on Investment
Low Invoice Volume / Small “Mom & Pop” Company
Volume/ Spend Data Invoices in FY 2008: 126Total Invoice Amount: $106,891 PO Spend: $111,994Estimated ASN Fees: $112
Invoicing CostsManual/Paper : $2,520Electronic : $630
Estimated eInvoicing Savings (Manual Costs- eInvoicing Costs) - ASN Fees
= $1,778
Return on Investment (ROI)
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Return on Investment
Certified Business Enterprise (CBE)
Volume/ Spend Data Invoices in FY 2008: 758Total Invoice Amount: $2,309,264 PO Spend: $2,483,620Estimated ASN Fees: $0 (Waived $2,484 as a CMBE)
Invoicing CostsManual/Paper : $15,160Electronic : $3,790
Estimated eInvoicing Savings (Manual Costs- eInvoicing Costs) - ASN Fees = $11,379 (Unwaived: $8,886)
Return on Investment (ROI)
Agenda
MFMP Overview What is eInvoicing
Benefits Methods to eInvoice Ariba Supplier Network (ASN) Return on Investment (ROI) eInvoicing summary
Vendor Tools Electronic Funds Transfer ACH
Resources Contact Us
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Agenda
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eInvoicing summary
When deciding to eInvoice, consider:
How many invoices are created for orders with State of Florida Executive Agencies in the past year.
Determine if you are invoicing these agencies on a frequent basis and
look at how many invoices were created during this calendar year thus far.
The cost of time, research, and production of print invoices for your customers.
eInvoicing Summary
eInvoicing summary
To become an eInvoicing vendor:
Obtain a DUNS number http://www.dnb.com
Obtain an ASN account http://supplier.ariba.com
Contact MFMP to set up your trading partnership [email protected]
Start eInvoicing!
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eInvoicing Summary
eInvoicing summary
Did you Know?
eInvoicing vendors are advertised on the MFMP website.
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eInvoicing Summary
Agenda
MFMP Overview What is eInvoicing
Benefits Methods to eInvoice Ariba Supplier Network (ASN) Return on Investment (ROI) eInvoicing summary
Vendor Tools Electronic Funds Transfer (EFT) Automated Clearing House (ACH)
Resources Contact Us
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Agenda
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Electronic Funds Transfer (EFT)
EFT (Direct Deposit) When pairing eInvoicing with EFT, a vendor will receive funds
substantially faster. Direct Deposit enables all payment monies to be available on the
desired payment date.
Advantages include: Peace of Mind — No mail delays or lost check worries Prompt Payment — Deposits will be available on the payment date Convenience — Avoid special trips to your financial institution Freedom — Your payment will be automatically deposited to your
account
Electronic Funds Transfer (EFT)
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Electronic Funds Transfer (EFT)
To find out more about EFT, contact DFS: Direct Deposit E-mail address: [email protected] Direct Deposit phone number (850) 413-5517
To sign up for EFT, complete and submit the form located here: http://myfloridacfo.com/aadir/dd_vendor.pdf
To receive funds electronically, please ensure your name on the Direct Deposit System and the name in your MFMP vendor registration account match directly.
At any time you can access DFS’ vendor payment Web site and look for a pending payment: https://flair.dbf.state.fl.us
Electronic Funds Transfer (EFT)
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Automated Clearing House (ACH)
1 Percent Transaction Fee The state instituted a 1 percent transaction fee to provide vendors with
electronic access to state buyers and to provide vendor support.
ACH Similar to EFT, Debit Automated Clearing House (ACH) is another form of
electronic payment. ACH electronically transfers funds from your bank account to the
MyFloridaMarketPlace account. Vendors can sign up for ACH and pay the 1 percent transaction fee
electronically. To have your MFMP vendor transaction fee set up as an ACH:
Visit the vendor toolkit http://dms.myflorida.com/vendortoolkit and download the ACH form for vendors.
Complete the form and e-mail it directly to the Department of Management Services (DMS).
Automated Clearing House (ACH)
Agenda
MFMP Overview What is eInvoicing
Benefits Methods to eInvoice Ariba Supplier Network (ASN) Return on Investment (ROI) eInvoicing summary
Vendor Tools Electronic Funds Transfer (EFT) Automated Clearing House (ACH)
Resources Contact Us
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Agenda
Resources: MFMP Vendor Web pages
The MFMP Vendor Web pages include a vendor toolkit and additional information to assist vendors on a daily basis.
http://dms.myflorida.com/business_operations/state_purchasing/myflorida_marketplace/vendors
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Resources: MFMP Vendor Web pages
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Resources: Vendor Toolkit
The vendor toolkit includes:
Vendor Training opportunities
CBE (Certified
Business Enterprise) Information
ASN (Ariba Supplier Network)
http://dms.MyFlorida.com/vendortoolkit
Resources: Vendor Toolkit
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Resources: Vendor Web pages
The Vendor Communication Bulletin Board displays vendor hot topics and the eNewsletter with focus on different, important subject matter, relevant to everyday business.
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Resources- Vendor Web Pages
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Frequently Asked Questions (FAQs)
http://dms.myflorida.com/business_operations/state_purchasing/myflorida_marketplace/vendors/vendor_frequently_asked_questions_faqs
Vendor FAQ section specifically for ASN (Ariba Supplier Network)
Frequently Asked Questions (FAQs)
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Agenda
MFMP Overview What is eInvoicing
Benefits Methods to eInvoice Ariba Supplier Network (ASN) Return on Investment (ROI) eInvoicing summary
Vendor Tools Electronic Funds Transfer (EFT) Automated Clearing House (ACH)
Resources Contact Us
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Agenda
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Contact Us
Additional information about the ASN can be found http://www.ariba.com/suppliermembership/en/smp_pricing.cfm To register as an ASN vendor: http://supplier.ariba.com
For technical questions concerning solicitations, please contact Vendor Help at: [email protected] or (866) 352-3776 Web site: http://MyFloridaMarketPlace.com Monday – Friday, 8 a.m. – 5:30 p.m., Eastern time
For questions about becoming a certified minority vendor, please contact the DMS Office of Supplier Diversity (OSD) at: [email protected] or (850) 487-0915: Web site: http://www.osd.dms.state.fl.us
Resources
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Resources
Today’s presentation is available on MFMP vendor toolkit http://dms.MyFlorida.com/vendormeetings
Future teleconferences: New content coming soon
Register at http://dms.MyFlorida.com/vendormeetings
Questions / Comments
Be on the lookout for a participant survey!
Resources
Wrap-Up
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Contact Us
Team Member E-mail Phone Number
Communications Analyst
[email protected] (850) 294-3080
F&A Process Analyst
[email protected] (850) 294-0739
Chief State Purchasing Operations
[email protected] (850) 488-7809
Vendor Management Analyst
[email protected] (850) 445-3894