Mid-Atlantic User’s Group Procurement Panel City of Virginia Beach Outstanding PO Close Process and PO Workflow Monitoring/Correction Instructions

Outstanding PO Close Process

The Outstanding Close Process is very simple. We send an e-mail to all department directors requesting that they review and close any outstanding orders from prior years. Any prior year orders to remain open require a form to be returned to the Comptroller. You will see references to INSITE. INSITE is our Oracle EBS 12.1.3 instance. After a certain date, the staff in Finance commence to close all orders. Included below are:

The letter sent to Departments

The list of reports to identify purchasing documents needing action

The procedures to close the open orders

The letter sent to departments

TO: Department Directors Department Business Managers

FROM: Donald L. Barnett, Comptroller, Finance Department Taylor Adams, Purchasing Agent

SUBJECT: Outstanding Purchase Orders

Department Role and Responsibility for Purchase Order Lines and Blanket Release Lines

Department buyers are requested to work with vendors to ensure receipt of prior year goods and services and resolve all billings associated with past year purchase order or blanket release lines. Vendors are expected to bill within 30 days of the City receiving the goods or services unless otherwise specified in the purchase order terms. Department buyers are requested to final close all FY15 or prior orders for both operating or CIP account order lines and blanket release lines before May 2nd including:

fully received and paid for operating and capital project orders, purchase order lines or blanket release lines

blanket release lines or distribution lines where the line remains open

fully matched orders where all lines and distributions have not been closed, final closed or cancelled.

Department buyers, project managers or section managers should contact Stacey Orlowski by May 2nd to close order or blanket release lines from FY15 operating or CIP orders or blankets that have been fully paid. Department Role and Responsibility for Exemption Requests Departments are requested to submit a Prior Purchase Order Maintenance Request (DF-OPO-2) form for purchase orders in excess of $5000 and prior to the cutoff dates listed below to remain open. Exemption requests should be received by the Comptroller’s Division by Monday, April 25th 2016. Under $5,000 All open CIP or operating account lines or blanket release lines for less than $5,000 and issued prior to the cutoff dates must be closed by the departmental buyer before May 2nd. Lines not closed by the departmental buyer will be closed by Finance Purchasing and Finance Comptrollers Division. All contract lines or blanket release lines created with operating account funds will require an exemption request submission to remain open if the lines are dated in FY15 or prior. All contract lines or blanket release lines created prior to the cutoff date and for greater than $5,000 with project account funds will remain open unless the department requests that the line be closed. Cut-Off Dates In an effort to manage outstanding obligations, the Finance Department is moving forward with closing all operating budget purchase orders lines dated in FY15 and prior fiscal years, including individual purchase order lines and blanket release lines. Finance will also be closing open Capital Project Purchase Orders lines created prior to July 1, 2011 which are NOT associated with projects being closed as of June 30th (see “Year End Project Close Process” below). Year End Project Close Process A separate Comptroller initiative closes Capital Projects at year-end. As part of this initiative, a request to close the project will be forwarded to the Department Section Manager. When a project is closed in InSITE no additional purchasing or expenditure transactions may be processed against this project. As part of the year-end project close process, all open purchase orders associated with that project will need to be closed so that the project may be closed in InSITE. Usually, the request to close purchase orders and blanket release lines relating to the Year-End Project Close process will need to be completed by June 30th. Finance Actions

Finance Purchasing and Finance Comptroller’s Division will automatically close operating and CIP purchase orders or blanket release lines less than $5,000 and issued prior to the cutoff dates listed. All other operating account and capital project account purchase order lines or blanket release lines meeting the cutoff dates listed without an exemption form will also be closed. All closures will begin on May 2nd and be completed by June 30th. Please share this timely and important information with members of your units and staff that may not directly receive this correspondence. Questions about payment voucher requests may be directed to Comptroller’s Division/Accounts Payable at 385-4038. Questions on purchase orders or vendor issues may be directed to Purchasing Division at 385-4177. Questions on forms may be directed to, Comptroller’s Division at 385-4508. Thank you in advance for your cooperation and assistance with this process. Available Reports Some reports have been developed to help review the open Purchase Orders. Found in Discoverer Viewer in COVB Financials City Global Inquiry responsibility:

Return all forms to Finance/Comptroller’s Office, Bldg#1, Room 316 By the April 25, 2016 deadline.

Finance Department Prior Purchase Order Maintenance Request

Directions: Due at the Comptroller’s Division by April 25, 2016 All forms to be completed and received in the Finance Department, Comptroller’s Division by April 25, 2016. Return the completed form to the Finance Department, Comptroller’s Division, 2401 Courthouse Drive, Bldg#1, Room 316, Virginia Beach, VA 23456,. Or, the forms and vendor attachments may be scanned and sent via e-mail to: XXX@vbgov.com Each request below must be for over $5,000 and submitted with an attachment from the vendor or department as specified in the letter. The attachment from the vendor is not required if the outstanding amount is for services. Instead, the department will provide justification for the encumbrance to remain. If delivery has not been made or the invoice not been received, and the order is for the receipt of goods, attach a certification from the vendor on the vendor’s letterhead specifying anticipated delivery date, order completion date, anticipated billing date and vendor contact name and telephone number. The purchase order terms may be reviewed by the Purchasing Division to determine the appropriateness of the request. If payment has not been made, but the invoice has been received, attach a copy of the submitted payment voucher request form and the vendor’s invoice to this form.

Department Contact Name (printed): __________________________________

Department Contact Phone Number: __________________________________ Page Number

__ of __

******************************************************************************

******

1. Purchase Order Number: _______________________ Buyer:

_______________________

Circle One: Operating Account CIP

Need Order Open through (circle one) FY15/16-July 25, 2016 FY16/17- date:

______________

Attach Vendor Letter on Letterhead with Delivery Date, Order Completion Date or

Anticipated Billing Date

Department Justification (Be Specific):

____________________________________________________

Form DF-OPO-2

Helpful Reports in InSITE for Purchase Order and Payment Questions

Any employee can run reports with InSITE access. It is simple. Any employee of the City may request access to InSITE through your departmental security liaison. Information on training, login and access is available on the following beachnet site. http:///XXX What Reporting Tools are available in InSITE? InSITE has reports that are accessible by logging into the application and accessing standard reports or FSG reports. Additional reports are available through InSITE Discoverer Viewer, a separate reporting tool that uses your same InSITE userid and password. Both InSITE and InSITE Discoverer Viewer have been installed on most city computers and appear on your list of programs. Report Samples can help you determine which report to run. InSITE is a very powerful management tool that mid-level managers and supervisors can use to track revenues, expenditures, account funds available and vendor payments. Reports can be downloaded to MS-Excel and manipulated as needed. Finance encourages users to look at sample reports that are available in InSITE. The link below takes you to the beachnet site with examples of existing financial reports in both InSITE and InSITE Discoverer Viewer. Please select Purchasing Reports under Related Links. http:///XXX What Types of Reports will I need for this Process? Discoverer Viewer Reports

Report Name: FIN PO OUTSTANDING ORDERS BY PO PREFIX

Description: This report shows all POs with dollars remaining on PO lines by purchase order name.

What types of Reports – Continued.

Report Name: FIN AP PO INVOICE PAYMENTS Description: This report shows all invoices paid against a specific PO. Use this report

to see all the invoices processed against a particular PO. Helps determine if there are invoices missing or if charges were applied to other purchase orders or accounts.

SAMPLE

Report Name: FIN PO Historical PO Account Detail (by Project/Grant or by Budget Unit) Description: This report shows all POs and balances for a specified operating account

or project. Use this report to see Purchase Orders with outstanding balances.

SAMPLE

SAMPLE

Finance Department

Frequently Asked Questions on Outstanding Purchase Orders Q. Why is this process being done so early this year? A. July and August are busy months with the new fiscal year tasks. The purchase orders being closed are over 9 months old, and many of them are up to 21 months old. Departments are encouraged to look at open orders throughout the year to address issues with good receipts and billing prior to this process. Q. What is my role as a decentralized buyer? A. You are responsible for monitoring all requisitions and purchase orders that you create or approve to ensure that the goods and services specified are received and paid in a timely manner. Unneeded open requisitions should be canceled and unneeded purchase orders should be final closed as soon as identified. Q. Will a Prior Purchase Order Maintenance Request form (DF-OPO-2) to keep a purchase order open be considered if my department doesn’t supply the attachments or use the standard supplied form? A. No. Forms are available and accessible on the Beachnet>Financial Services>Accounting>Accounting Periods and Dual Year webpage and are required of all departments. Attachments are required for all requests. Terms generally require payment within 30 days of receipt of the invoice or goods or services. Vendors are required to promptly bill for provided goods and services. Q. Our department has received the goods or services but not the invoice. Will a Prior Purchase Order Maintenance Request form be required, or can we just specify that we are waiting on the invoice? A. Prior Purchase Order Maintenance Request form (DF-OPO-2) with a certification from the vendor or department (services) will be required. Requests to keep orders open based on the non-receipt of invoices will not be considered without an attached vendor certification or departmental certification. Departments are encouraged to call vendors to solicit invoices for goods and/or services rendered so that invoice may be paid in the correct fiscal year. Q. Our department submitted the payment voucher request and invoice to the Finance/Accounts Payable Unit, but it hasn’t been processed yet. Do I need to submit a Prior Purchase Order Maintenance Request Form? A. Yes. Attach a copy of the payment voucher form and vendor’s invoice to the Prior Purchase Order Maintenance Request form. No vendor letter is needed. This will enable us to process payments before closing the prior year order. Q. What if the vendor will not provide the certification to the department? A. Notify the Finance Purchasing Division that a vendor will not provide the requested certification. Keep track of the number of times and dates that you contacted the vendor and with whom you spoke. The purchasing agent will gather this information from you, and take

steps to work with the vendor before canceling the order and reissuing a new purchase order to a responsive vendor. You will still need to submit the Prior Purchase Order Maintenance Request form to the Comptroller’s Office with an attachment from the Purchasing Division. Q. Do I need to complete a Prior Purchase Order Maintenance Request form to maintain open blanket release lines? A. Yes. Open blanket release lines from prior fiscal years fall within these guidelines. Decentralized purchasing agents are reminded to take steps to insure that prior year blanket release lines are closed before initiating new release lines. Departments are encouraged to close out release lines at the end of the fiscal year if they contain unused dollars, and establish new release lines at the beginning of the new fiscal year for current year expenditures. Q. I have a number of project purchase orders? Will Finance close these orders as well? A. Finance will close operating budget obligation lines from FY14/15 and prior. Finance will also close Project orders created prior to July 1, 2011 with no expenditures during the last two fiscal years. If there are multiple lines on a purchase order and some are funded through a project or grant, and others are operating budget lines, each line will be examined to determine if it meets the date criteria for closing. Q. How will the department know if the Prior Purchase Order Maintenance Request has been accepted? A. Departments will be notified only if a Prior Purchase Order Maintenance Request has been rejected. Purchase orders will remain open for all accepted requests. Q. Why is this process being done? A. Over the past few years, the volume of outstanding orders has increased, increasing the City’s financial obligations. This effort is intended to safeguard the financial resources of the City and to reduce the prior fiscal year obligations of the City. Q. Finance says I need to liquidate all Purchase Orders for projects that will be “Final Closed”. Do I need to liquidate a Purchase Order even if it was created this year? Do I need to liquidate the whole Purchase Order if it includes other projects that are still active? A. Yes and No. Yes, in order to “Final Close” a project, all Purchase Orders must be liquidated whether it is a current or old Purchase Order. No, if a Purchase Order includes multiple projects, only the lines associated with the “Final Closed” project needs to be liquidated.

Reports from Discoverer

PO Balances Report – Shows all lines and distributions per open standard PO prior to current year. This report is used to identify POs to be closed.

Selects all POs with a GL encumbrance date in the prior years that are not cancelled or closed, and provides distribution line and PO line data that are not closed or canceled.

PO Release Line Report – Shows all open release lines for all open blanket orders and lines prior to the current fiscal year.

Contract PO Report – Shows all open contract orders with a create date in the prior fiscal years.

PO Lines in Incompete, In Process, Reapproval or Rejected Status – This report is used by Central Purchasing to correct or fix purchase orders requiring update before they can be closed.

PO Blanket Lines in Incomplete or Rejected Status – This report is used by Central Purchasing to correct or fix blanket PO lines.

Procedures to Close POs

1. 0 Purpose This document provides guidance on the steps needed to identify prior year purchasing

documents for deletion prior to the purchase carry-forward process.

2.0 Procedure/Process

2.1 Memorandum to Departments

The Comptroller issues the Outstanding Purchase Order Instructions to all Departments.

The instructions identify the department responsibilities to close all prior fiscal year

orders. Departments are provided with a deadline to do this.

2.2 Finance Comptroller Runs Standard Discoverer Reports

The following reports are run:

AP PUR PO Balances o This report is run twice. This report identifies Non-Project Orders, and

secondly Project orders prior to the current fiscal year. o The second worksheet in this report set is run once and identifies ALL

distributions per Purchase Order. This report is provided to Finance Comptroller for the zero dollar process.

AP OLD RELEASE LINE REPORT o This report identifies release lines to be closed.

PUR BLANKET IN REJECT STATUS

o This report is provided to the Finance Purchasing Division to correct the blanket release lines.

PUR OPEN CONTRACTS PRIOR TO DATE o This report is provided to the Finance Purchasing Division to close all

contracts prior to the current fiscal year.

PUR PO LINES IN INCOMPLETE STATUS o This report is provided to the Finance Purchasing Division to close all

PO lines in an incomplete status.

2.3 The AP PUR PO BALANCES Project and Non-Project Reports, along with the AP OLD

RELEASE LINE REPORT are compared with the exemption requests received and

approved by the Comptroller. All Purchase Order or Release lines that were approved

to remain open are crossed off the list.

The ones not identified on the list are researched in InSITE to determine why they were

not on the list. In most cases, the PO was either too recent, and didn’t meet the

parameter of being a year old or were already finally closed.

2.4 The Finance Comptroller’s Office reviews the entire complete list of purchase orders

with all distribution lines.

Orders that have Zero Balances remaining on the encumbrance may be MASS CLOSED.

See Appendix B for details.

The orders that have No Invoices Processed against them are processed through the

Mass Close Process in INSITE using the City Public Sector Purchasing Power User

Responsibility. See Appendix B for Mass Close Instructions.

2.5 The PWCN Public Works Contracts Office orders are closed via a separate spreadsheet

provided to the Finance Purchasing Division. Those not closed by Finance Purchasing

will be closed by Finance Comptroller.

2.6. All other orders and release distribution lines are closed by the Finance AP unit. The

Finance AP Unit is responsible for closing distribution lines that have a target date of

one fiscal year earlier than June 30th of the current year that have not been exempted.

Often these distribution or release lines when closed for invoicing will result in the

entire purchase order being closed. Sometimes, when there are multiple distributions

or multiple lines or a combination of both, the order or other lines will remain open.

APPENDIX A. MASS CANCEL

Use this functionality for cancelling groups of requisitions or purchase orders that you no longer

want to honor. No payments may be made against these orders prior to running the mass

cancel.

The only information required to Mass Cancel a document is the account number. However, if

only the account number is used, the system will return all documents available for cancellation

which can be difficult to work with. It is recommended that the account number, creation date

and optionally the vendor be available prior beginning. Documents that are not available for

on-line cancellation (auto created Reqs, matched POs, etc) cannot be made available for Mass

Cancellation.

1) From appropriate responsibility Navigate: Accounting > MassCancel

2) Enter Batch Name (document number or today’s date) is recommended.

3) Enter Document Type

a. Requisition > Enter Requisition Type of Purchase

b. Purchase Orders > Check Cancel Backing Requisition Lines (Requisition

encumbrance will be re-established if not checked)

4) Enter Creation Date (also enter Supplier if desired)

5) Enter Account Number (Entering a range is not recommended except in the case of

multiple line documents. ALL account numbers must be included in the range for the

document to be made available for Mass Cancellation.)

6) Click Create Batch (Concurrent Request will be submitted)

7) Output of Request will be 5 pages

a. Page 1 > Report Parameters

b. Page 2 > Unable to Cancel Requisitions listing

c. Page 3 > Unable to Cancel Purchase Orders listing

d. Page 4 > Partially In Range Documents

e. Page 5 > Fully in Range Documents

i. Your document should be listed

ii. If not review pages 2-4 for problem and delete batch (see step 7)

8) Navigate: Accounting > Run Mass Cancel

9) Select Batch Name from LOV

10) Override Cancel Date if necessary (ie. 30-JUN-20XX) – TAB out of field

11) List of documents available for cancellation will populate – all highlighted items will be

cancelled.

a. Select records to be cancelled (CTRL-click selects 1 record; SHIFT-click selects

multiple records)

b. To CANCEL Documents > click Run Mass Cancel (Concurrent Request will be

submitted)

c. To DELETE Batch > click Delete Mass Cancel Batch (Concurrent Request will be

submitted)

12) Review Concurrent Request

APPENDIX B. MASS CLOSE

The Mass Close of Purchasing Documents concurrent program enables you to change the status

of purchase orders to Closed. This is applicable to purchase orders that have been fully

processed but which do not have a status of Closed. When you run the concurrent program, the

purchase orders are mass closed completely (this includes headers, lines, shipments).

You can mass close purchase orders with the following statuses: Frozen, On Hold,

Approved, Reserved, Requires Re-approval, Closed for Invoicing and Closed for

Receiving.

You can mass close the following documents: Standard Purchase Orders, Blanket

Purchase Agreements, Planned Purchase Orders and Contract Agreement and Blanket Releases.

The parameters for running the concurrent program are Document Type, Document number,

Date range and Supplier Name.

A report is produced as output from the concurrent program. This report lists the document

number and document type of the Oracle Purchasing documents that were updated by the

program.

From the concurrent manager, select REQUEST SET.

For each line, complete the parameter for the Purchase Order to be closed.

Do not leave any line blank. All Purchase Orders will be closed.

PO Workflow Monitoring Instructions

1.0 Purpose

Purchasing documents are routed through approvals using a background process called Workflow. If a

document becomes ‘stuck’ within this process the Workflow Monitor tool can be used to restart the

process.

The steps to monitor and restart the workflow process are addressed in this document.

2.0 Procedure/Process

The Workflow Monitor is a tool that allows you to view and administer the status of a specific instance of a

workflow process. You can use the point-and-click interface to display detailed status information about

activities in the process as well as about the process as a whole

Searching for Workflows in the Status Monitor:

Standard Oracle Responsibility: Workflow Administrator Web (New)

Actual Active Responsibility: XXXXXXXXX

Navigate: Administrator Workflow→Status Monitor

In the Workflows page, search for the workflows you want to review by using the search criteria below to

limit the size of the results list.

Workflow Type - Select the workflow item type you want to review. The display name for the

workflow type you select populates the Workflow Type field, and the internal name for the

workflow type you select populates the Type Internal Name field.

Workflow Owned By - Select the user who owns the workflows you want to review.

Item Key - Enter the item key that uniquely identifies the workflow you want to review. This

information is obtained by logging into SQL*Plus using the ‘BOLINF’ password and running the

select statement(s) located at: T:\VIBES\SQL_SCRIPTS\workflow\workflow_research.doc

Workflow Status - Choose the status of the workflows you want to review, In Process -

Workflows that do not have an end date (including errored workflows), Complete - Workflows that

have an end date, Error - Workflows that do not have an end date and have at least one errored

activity or choose Any Status to display workflows in any status.

Workflow Started - Choose Today, This Week, Last 2 Weeks, Last 30 Days, Last 60 Days, or

Any Time to specify the start date of the workflows.

The results region displays the workflows that match your search criteria.

Activity History button

Review the activities executed within a workflow by selecting the workflow and clicking the Activity History

button.

Use the activity administration buttons to perform administrative operations on any activities that are not

yet complete.

To skip an activity and force the workflow to transition to the next activity, select the activity and select the

Skip button. In the Skip page, enter the result value to assign to the activity if required.

To retry an activity, select the activity and select the Retry button.

Status Diagram button

View the status diagram for a workflow by selecting the workflow and clicking the Status Diagram button.

The status diagram window provides graphical cues about the status of the process and its activities:

An activity icon may be highlighted with a colored box to indicate that it is in an "interesting" state.

The following table shows what state each color indicates.

Color of Box State Possible Status Code

Red Error ERROR

Green Active/In Progress ACTIVE, NOTIFIED, DEFERRED

Yellow Suspended HOLD

<none> Normal COMPLETE, WAITING, NULL

Any transition (arrow) that has been traversed appears with a thick green line, while an untraversed

transition appears with a thin black line.

Click on an activity icon in the diagram to select it and update the detail tab window to display information

about the activity.

Double-click on an activity icon that represents a sub-process to drill down to the sub-process' diagram.

This action automatically updates the process title to reflect the name of the sub-process and updates the

detail tab window to display information about the sub-process as a whole.

Participant Responses button

Review notifications sent by a workflow and participant responses by selecting the workflow and clicking

the Participant Responses button.

Workflow Details button

To view details for a workflow, including the workflow type definition and current workflow attribute values,

select the workflow and click the Workflow Details button.

3.0 Persons Responsible

A ViBES Team Member will be responsible for Workflow Monitoring.

4.0 Keywords

Workflow - background process that handles purchasing approval by using the defined approval controls

and hierarchies to route documents for approval