AP Workflow FSD 07-19-10

FI Only (Non-Purchase Order) Invoice Workflow

Functional Implementation Specification Template

FI Only (Non-Purchase Order) Invoice WorkflowIBCSSC07

1


Table of Contents

1. Document Control.................................................................................................................4

2. Purpose of this document.....................................................................................................5

3. Project Scope.......................................................................................................................5

4. Functional Specification Overview.......................................................................................5

4.1 Business Owners and Key users.............................................................................5

4.2 Business Units Impacted.............................................................................5

4.3 Business Requirements...........................................................................................6

4.3.1 Reports.........................................................................................................7

4.4 Approval List Criteria................................................................................................7

4.5 Prerequisites............................................................................................................7

4.6 AP Process flow.......................................................................................................8

4.7 Invoice Processing and Process Logic within SAP for the Business Workflow.....11

4.7.1 Incoming Invoice.........................................................................................11

4.7.2 Scan into PRT.............................................................................................11

4.7.3 Coding Invoice............................................................................................12

4.7.4 POST/PARK Criteria...................................................................................12

4.7.5 Position ID...................................................................................................12

4.7.6 Validation.....................................................................................................13

5.0 Work Item Expiration and Reminders including MS outlook notifications...............14

6.0 Error Handling.........................................................................................................15

2


1. DOCUMENT CONTROL

Document Properties

Owner and contact informationDocument Prepared By Venkat VedireStandards Owner: Laurie Reed

Tony TarantinoContact Information: Responsible Team: AP Workflow Automation Team

Amendment History

Amendment history for document

Summary of Changes since last revisionSection / Topic Short Description of the Change

Distribution

List recipients for distribution of document Group Recipient Role Level of

InvolvementDesign Review Group

Refer to list Refer to list Review

IBC & SSC Laurie Reed Core AP Workflow Project Team Review & Approve

Tony Tarantino Core AP Workflow Project Team Review & Approve

Gail Arner Core AP Workflow Project Team Review

Belinda Strope Core AP Workflow Project Team Review

Tina Beier Core AP Workflow Project Team Review

Approval/Sign off: The following key stakeholders agree that this document represents the IBC AP Workflow Automation requirements. Their signature indicates this document is agreed-upon and finalized based on the information provided and analyzed to date.

List of persons required for approval of documentName Title Date SignatureLaurie Reed VP Shared ServicesTony Tarantino Manager Accounts Payable KC SSC

3


Object Number and Name: Date Completed:

IBCSSC – FI Only (Non-PO) Invoice WorkflowWritten By: Phone#: (908) 821-6776Venkat Vedire

Functional Contact: Phone#: (908) 821-6776Venkat Vedire

Technical Contact: Phone#:

Connected Portfolio Contact: Phone#:

2. PURPOSE OF THIS DOCUMENT

This specification document pertains to building the business Workflow for Accounts Payable (Non Purchase Order based Invoices - Hostess Brands).

The purpose of this document is to describe the business requirements associated with the implementation of an automated SAP Business Workflow (custom) process for Accounts Payable Non Purchase Order invoices, utilizing HCM OM & PA Master data and SAP (ECC 6.0). The document will focus on the business and system requirements associated with the determination, validation/calculation and reporting for the AP Workflow process and payables to the Vendor made by Interstate Brands Corporation (“IBC”). In addition, this document will also outline the specific functional requirements related to using SAP Business Workflow within IBC’s SAP environment.

The Functional Requirements section provides a list of the business needs related to the implementation of SAP Business Workflow process, and the Technical Specifications (separate document) relates to the technical aspects that require custom specifications for the interface and/or programming.

IBCSSC solution will use a “FI Only (Non-PO) Invoice Workflow” for invoices that do not have POs associated with them and therefore there is no matching required at invoice entry stage.

3. PROJECT SCOPE

Attached below is the scope of this project.

http://projects/pm/BackOffice/apworkflowautomation/Project%20Documents/IBC%20AP%20Workflow%20Project/Project%20Preparation/Initial%20Project%20Planning/AP%20Workflow%20Automation%206%2010%2010%20Final.ppt (CTRL + Click).

4. FUNCTIONAL SPECIFICATION OVERVIEW

4.1 Business Owners and Key Users

Gail to add table here of business owners.

4.2 Business Units Impacted

4

http://projects/pm/BackOffice/apworkflowautomation/Project%20Documents/IBC%20AP%20Workflow%20Project/Project%20Preparation/Initial%20Project%20Planning/AP%20Workflow%20Automation%206%2010%2010%20Final.ppt




The following business units are impacted by this workflow implementation:

IBC and Kansas City Shared Service Centre.

Manage Accounts Payable.

Business Unit coders and approvers.

4.3 Business Requirements

Non Purchase Order Invoices (direct Invoices) with scanned images

Ability to create/route a parked workflow invoice (Transaction Code – FB60/FV60/FB65/FV65) to the agent for approval based on HCM Position Number.

Ability to attach a PRT invoice link at the time the invoice is processed, (via business workflow). This needs to happen real time so that the invoice approval and payment is not delayed.

Ability to restrict who can post FB60 (SAP Security Authorization) transactions at the user ID level while still allowing all users to post MIRO (Transaction to post the invoice in reference to a purchase order).

Ability to determine whether invoices should be routed for workflow or not at the vendor authorization group level (Ex Utility invoices & some Contractual payments are paid without approvals so they don’t need to be work flowed).

VENDOR AUTHORIZATION GROUP

PARK POST NEED TO BE WORKFLOWED

POSITION IDON HEADER

1000 – KC and Manila YES YES NO Unless an Override

2000 – KC and Manila YES YES (only KC) NO Unless an Override

3000 - Blocked NO NO (Except for KC super users)

NO N/A

9000 YES YES (only KC) YES N/A8000 – Conversion Strategy

YES YES (KC and MANILA) YES N/A

Transaction codes (FB03/FBV3) Access (To view the scanned image):

Travel and Expense (T&E), Professional services, and Settlements invoices should be secure (vendor master update with a field (flag value) to make these invoices secure) and the rest of the invoices as non secure.

Ability for workflow approvers to be able to only do the following tasks to a workflow invoice:

o Approve an Invoice without coding changes.o Reject an Invoice which should require a reason code and or a note.o Approve an invoice with coding changes.o Contractual approval at VP level should work as approval with code changes and

will disengage any additional approvals. Ability to utilize the HCM data so that Invoice amount is approved by the appropriate

workflow user level within Hostess Brands based off the current spends authorization policy. This authorization approval path will be determined by the original approver’s HCM Organizational structure.

Hostess Brands current spend authorization policy will be utilized for user’s dollar amount approval’s in Workflow.

5


Ability to upload an Excel file of invoices to workflow based on the cost centre, profit centre or HCM position number. Exact fields of what will need to be uploaded will need to be defined (See Open item’s section on page 15).

Ability to create and attach a mock invoice to the workflow item for all Excel file invoices (See Open item’s section on page 15).

Ability for multiple AP users in Manila to log in as themselves and have access to a centralized workflow mailbox for rejections, invoice questions etc.

Ability for multiple AP users in KC to log in as themselves and have access to a centralized workflow mailbox in SAP for escalations from the Manila team.

Ability to access active or inactive user’s SAP inbox. This access will be restricted to a few individuals.

Ability to delete workflow items and restrict by user ID who can reactivate them (if this functionality exists).

All workflow approvers and coders should be able to log into SAP via internet to approve their workflow items. (See Open item’s section on page 15).

All users should get an email to their hostess email address when they receive a workflow invoice in their SAP workflow inbox.

All users should get one daily reminder once they have items in their SAP workflow inbox that are over 2 business days old. This needs to be configurable and easily changeable so that it can be limited further if so desired in the future.

All invoices that are 5 business days old should be automatically escalated and workflow up to the next approver in HCM organization structure. This needs to be configurable and easily changeable in the future.

All users need to be able to delegate their spend authorization in times of vacation and absence.. The delegation can only be to a user that has an equal or greater spend than the delegator. This needs to be configurable and easily changeable in the future.

Any delegation of spend authorization to a user that is above user’s spending limit per spend authorization policy will be handled via a exception process as outlined in the spend authorization policy. This data will be updated in HCM.

Ability to forward the work items to other SAP users. Update Cost Center master with cost center/profit center and initial workflow agent. Credit Memo Process - The Credit Memo approval process should be same as the

Invoice approval process except the escalation process based on spend authorization of the agent.

Invoice line item tax code determination (refer to page 15 open items).

4.3.1 Reports

An accrual report needs to be created that identifies the total invoice amount (and appropriate cost center) for accrual purposes.

A park age report is needed to summarize all outstanding items and where they stand in the workflow approval process.

A report needs to be created that identifies all delagations over a period of time so that it can be monitored by SSC and audit.

An audit trail of User ID’s and changes/approvals needs to be created for all workflow invoices.

An AP Cost Center management report needs to created that is automatically routed to Cost Center owner’s SAP inbox; a notification of this report is sent to the user’s Outlook inbox.

A report of approved Workflow items that captures the final approver and associated spend level.

A report identifying any individuals utilizing the contractual approval process. HCM report of all grade level names and associated custom object field (i.e., 0-7).

This is an audit requirement to identify exceptions.

6


4.4 Approval List CriteriaHCM OM AP Custom Object Field and the Invoice Amount will be used to define appropriate spend authorization limits.

Job Title Level Upper Limit Contractual Override FlagCoder 0 $ 0

Manager 1 $ 2,500 Sr.

Manager2 $ 5,000

Director 3 $ 10,000 VP 4 $ 25,000 X

Sr. VP 5 $ 100,000 X EVP 6 $1,000,000 XCEO 7 >$1,000,000 X

4.5 Prerequisites

SAP HCM & R/3:

Update the Cost Centre Master (CSKS) with Position ID’s for each Cost Center. The HCM master data team has to maintain Email ID’s for each IBC employee. HCM will provide the following information

Employee ID/Personnel Num (PERNR Num)

First Name Last Name Position ID Job Title Email ID Custom Field (Grade Level)

Mapping has to be maintained between HCM and SAP R/3 (ECC) to tie the HCM’s Personnel Number to SAP R/3 (ECC) User ID Master Data.

Bring HCM OM structure into SAP R/3 to determine the approver’s escalation path.

4.6 AP Process flow

7


8


9


4.7 Invoice Processing and Process Logic within SAP for the Business Workflow:

4.7.1 Incoming Invoice The San Antonio SSC scans the invoices into PRT into appropriate queues based

on the invoice type.

4.7.2 Scan into PRT The Manila SSC will generate invoice documents in SAP from the PRT scanned

images and enter all of the appropriate header information and park the invoices for triggering the workflow.

4.7.3 Coding Invoice While coding the invoice, SAP system prevents input of invalid Vendor, Document

date, Posting date, GL account, Profit Centre, Cost centre, Internal order, Tax code. At this point the invoice is parked by the coder and the Workflow is triggered via an event.

The SAP Business Workflow process will be delayed about 1 hour (60 minutes) once the invoice is parked to generate a link to the PRT invoice image. Following that, notification to the agent will ocurr with an email (MS Outlook).

4.7.4 POST/PARK criteria Based on the type of service (POST/PARK) the invoice is routed accordingly. The

selection criteria to either park or post the invoice is dependent on the ‘Vendor account – Range’ of the vendor on the Invoice.

Two options for initial routing of an Invoice accordingly: If the SAP system is cognizant of the fact that the vendor doesn’t belong to

the right ‘Vendor account - Range’, the Invoice is directly posted without the need of Workflow or Approval (Utility, T&E, Professional Services and Settlement invoices).NOTE: If the SAP Workflow process has any issues with posting the invoice, the invoice should be parked and a notification (Outlook Email) will be sent to help desk.

10


If the SAP system is cognizant of the fact that the vendor belongs to the right ‘Vendor account - Range’, a business Workflow is triggered as soon as the Invoice is parked in the system and it is subjected for further processing.

THRESHOLD CHECK If the invoice is in the parked state, the SAP Business Workflow process

should do an Initial threshold dollar limit check on the invoice. If the invoice is under that threshold limit maintained in SAP (Custom table), directly post the invoice as mentioned above otherwise the invoice is subjected for further processing.NOTE: If the SAP Workflow process has any issues with posting the invoice, the invoice should be parked and a notification (Outlook Email) will be sent to help desk.

4.7.5 Position ID As per the business specification we may or may not receive the Position ID () on

the header (Details tab - Assignment field) of the Invoice document:CASE1:

o If we receive the Position ID on the Invoice header, we would validate that whether it is valid (in HCM).

o if we receive a dummy value (EX ‘77777777’); we would validate the dummy value in a custom table maintained in SAP R/3 to determine the corresponding agent.NOTE: Although the consideration is to maintain ‘5’ inboxes (KC Help Desk, KC Escalation Desk, Manila Help Desk, Manila Escalation Desk, Vendor Maintenance) to route the work item’s per the reason code, the plan is to route the work item’s with issues to one single inbox (Manila Help Desk) during the hyper care (just after Go-Live) phase.

o This agent has limited options to choose from (the agent would see 2 buttons; 1 for resolving the issue in SAP (also need to fill in a mandatory note) and the other for routing the work item to Manila help desk.

o Manila help desk will review the note provided by the agent and update the invoice for further processing.

CASE2:o If we don’t get a Position ID on the Invoice header, we would check for the ‘Cost

Centre/Profit Centre/Internal Order’ on the ‘first line item’ of the Invoice. The Cost Centre must be derived from a Profit Centre or an Internal Order if we don’t have the Cost Centre on the Invoice.

o If we don’t get Position ID on the header or neither a Cost Centre/Profit Centre/Internal Order on the line item of the Invoice, it should be routed to Manila help desk.

o Based on the Cost center we will determine the Postion ID from the Cost center master.

o Based on the Position ID, Workflow process will identify the respective agent with corresponding relation (position-employee) maintained in HCM Organizational management, and route the work item into the agent’s SAP inbox also sending an email (MS Outlook) to the agent with the hyperlink to get into SAP inbox (SBWP) utilizing a standard SAP program.

o The approving agent will have several options to use in reference to the received work item (invoice in SAP).

Approval Options:

Approve with Coding changes

11


CASE1:

After the changes to the invoice; if the user is comfortable with the changes, he would send the invoice for further processing (by clicking on “save as completed” (simulate)), then the Workflow process should direct the process to the standard SAP validation and spend authorization check – if everything is a success invoice is posted in SAP.

CASE2:

If the agent is not sure about the coding on the invoice he would choose to click “save”, then the Workflow process should direct the invoice towards the Manila help desk.

Contractual Approval This process would work in exact similar way as approve with coding changes mentioned above (CASE1 and CASE2 – Except the spend authorization check).NOTE: VP (vice president) and above can ONLY can see and choose this option (button). The Workflow process would check for override flag in the spend authorization table maintained in SAP for routing the work items for contractual approvals (VP and above).If the Agent chooses to use this option the Workflow process should by pass the spend authorization check and post the invoice.

Approve without Coding changes Approving the invoice without coding changes.

Reject If the agent wants to reject the work item in his inbox by clicking the reject button, the Workflow process should pop up a drop down list with all the reason codes maintained in SAP (custom table). Per the reason code selected, the Workflow process should direct the work item to the respective help desk inbox.

Rejection reasons will be selected by the agent from a drop down list which are stored in a maintainable custom table in SAP:

12

REJECTION CODES FORWARD REJECT TO Not My Invoice Manila Help Desk SAP Mail BoxDuplicate Invoice Manila Help Desk SAP Mail BoxImage Unreadable Manila Help Desk SAP Mail BoxNot an Invoice (i.e. Statement) Manila Help Desk SAP Mail BoxIncorrect Vendor Manila Help Desk SAP Mail BoxIncorrect Vendor Remit To Address Manila Help Desk SAP Mail BoxIncorrect Invoice Amount Manila Help Desk SAP Mail BoxIncorrect Invoice Data Manila Help Desk SAP Mail BoxPO Invoice Manila Help Desk SAP Mail BoxCredit Memo Manila Help Desk SAP Mail BoxShort Pay Invoice Manila Help Desk SAP Mail BoxOther Manila Help Desk SAP Mail Box


4.7.6 Validationo Data validation - Once the agent approves the invoice, SAP does the validation - if

any issues, Workflow with route the work item to Manila help desk.NOTE: Possible validation errors refer to section 4.15.

o Spend validation - After the data validation, the SAP Business Workflow process should perfom a spend authorization check. In this step it will verify the cross reference table in SAP for the approval limits (refer to section 4.3 – Approval list criteria).

o If the SAP Business Workflow process finds the spend authorization check (in compliance with spend authorization policy) is failed, the work item will be escalated to the destined agent in Organizational management hierarchy and making sure that an email is sent to EACH of the lower level chiefs while escalating the work item towards destined chief.

o If the approved work item meets the requirements with the spend authorization check, the Invoice is posted (the posting date on the invoice is set to the ‘System date’ by the Workflow process before posting the invoice) and the workflow is terminated.

o The payment process is initiated as soon as the SAP Business Workflow process is terminated.

5.0 Work Item Expiration and Reminders including MS outlook notifications

Expiration and Reminders

All invoices sent out by SAP Business Workflow will remain in the Approver’s Inbox for five business days. After this point the workflow will escalate the work item to the next level chief in HCM organization structure.

The workflow will send an email to the lower level chief that the work item is routed to the next level chief.

All users should get one daily reminder once they have items in their workflow inbox that are over two business days old.

MS Outlook notifications

A report will be used to receive an email (Outlook) whenever he has a new Work item in his SAP inbox.

13


6.0 Error Handling

SAP R/3 (ECC) has standard workflow administration tools (reports and transactions) to deal with workflow errors. If the workflow fails, system will generate a “Workflow Error Report” and forward it to the “Workflow Administrator” as “Workflow Error Message” who will then investigate and co-ordinate the resolution of the issue(s) and restart the workflow.

SAP Validation and Posting Errors

The final version would be updated as soon as we get the business signoff.

Duplicate entry process handling

The diagram above shows the steps for handling duplicate entries for vendor invoices:The Workflow process should route the work item to Manila help desk if we have a duplicate entry for vendor invoice in SAP.

14

SAP Business Workflow

SAP GUI End User

Email Client

Email

SAP Notifications


If the Manila help desk finds that the work item received is a potential duplicate entry; they would delete the invoice from the system otherwise they would override the Position ID with a Dummy Position ID maintained for KC help desk and ‘park’ the invoice for the workflow to be triggered; OR if the Manila help desk has the right authorization to post the invoice they can post the invoice (Authorization group ‘8000’).

If the work item is received by KC Help Desk for duplicate entry; they would ‘post’ the invoice.

OPEN ITEMS:

Reporting for Workflow. Ability to upload an Excel file of invoices to workflow based on the cost centre, profit centre

or HCM position number. Exact fields of what will need to be uploaded will need to be defined.

Ability to create and attach a mock invoice to the workflow item for all Excel file invoices. Credit Memo process.

15


Error Messages Assignment field converted to optional from mandatory. Auto populate calculate tax field on invoice header. PRT->document number link.

16

AP Workflow FSD 07-19-10

Documents

Transcript of AP Workflow FSD 07-19-10