Kuali Project
____________________________________________________________________________________
Accounts Payable
Matching
Functional Specification
The University of Arizonia
Michigan State University
_________________________________________________________________________________________
October 1, 2011
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Table of Contents
REVISION HISTORY ................................................................................................................................................................................. 3
FUNCTIONAL DESCRIPTION ................................................................................................................................................................... 4
BUSINESS REQUIREMENTS AND ASSUMPTIONS ................................................................................................................................. 4
Assumptions................................................................................................................................................................................................ 4
Requirements ............................................................................................................................................................................................. 5
PREQ FLOWCHART ................................................................................................................................................................................ 8
QUESTIONS/ISSUES ................................................................................................................................................................................ 9
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Revision History
Version
1.0
1.1
1.2
Date
11/04/2011
11/10/2011
11/29/2011
7/13/2017 3:53:00 PM
User
Vivienne Merriott
Vivienne Merriott
MSU
Description
Draft
EIRT
Draft
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Functional Description
KFS is delivered with matching functionality on quantity but not on Unit Price. This modification is
being requested to account for Unit Price and Cost Source variances.
Creating Unit Price tolerances and setting matching exceptions allows for the PREQ to be entered
based on the vendor invoice without the initiator verifying the validity of the amount manually. This
saves data entry time for the AP Specialist and prevents errors.
This modification will use the delivered Cost Source table to identify allowable tolerances for a
particular order which will be set when the Purchase Order is created.
When the PREQ is processed tolerances will be applied and if a Unit Price falls outside of the
tolerable variance a warning message will display to the user upon Calculate. A note explaining the
variance for each line item will be added to the Notes upon submit.
The PREQ will route to the Fiscal Officer and the Purchasing Office for approval and then back to
Accounts Payable for processing. The Fiscal Officer and Purchasing Office approval will be noted in
annotations on the Route Log and become part of the PREQ.
A new Parameter COST_SOURCE_VALIDATIONS will be available. If turned on to validate against
the cost source table and if PREQ does not match based on cost source variances then an EIRT
should be created. Error messages should display on EIRT based on KFS validations.
When an EIRT is generated from a PREQ the PREQ will be cancelled.
Actual eInvoicing
When a PREQ is generated from an EIRT and unit price exceeds the cost variance the PREQ should
include the same warnings and follow the same routing as a normally created PREQ.
Business Requirements and Assumptions
Assumptions
1. The Cost Source Table will be used as delivered and configured to establish upper tolerances
that meet the needs of all Purchase Orders.
2. All Unit Price tolerances are based on a percentage of the PO Unit Price. There will not be
tolerances based on a set dollar amount.
3. The logic used by the EIRT to determine variances will be used by the PREQ.
4. Tolerances will not be calculated for sales/use tax or below the line items.
5. The code that was changed on the EIRT not to require the Specialist to approve overages
will need to be added back in.
6. Hold and cancel buttons to function as originally established.
7. Error messages display on document, and move with document when routed.
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Requirements
1. Clicking Submit (or calculate) will trigger the variance checking. When variances are
exceeded, a warning message should be presented to the AP Specialist, and
displayed on the PREQ.
2. When the AP Specialist clicks “reject”, a note is added to the PREQ indicating the
type of variance and the lines affected. I.e. Lines 1,2,5 – Unit Price Tolerance
exceeded. Lines 3, 4, 6 Quantity invoiced exceeds quantity ordered. Use delivered
error messages from EIRT document.
3. The PREQ will go into “Awaiting Overage Approval- Fiscal Officer” when the AP
Specialist clicks Submit and there is a variance. The PREQ will route to the Fiscal
Officer’s action list.
4. When the AP Specialist clicks “Batch”, PREQ is held in a file to go through a “batch
match” job to be run nightly.
5. PREQs that go through batch that have rejections will be in a status of Awaiting
Overage Approval – Fiscal Officer. (See 6) Error messages will display as they do on
EIRT.
6. Two new route statuses:
a. Awaiting Overage Approval – Fiscal Officer
b. Awaiting Overage Approval – Purchasing
7. Two new buttons to replace the Disapprove button:
a. Overage Disapproved
b. Overage Approved with Changes
APPROVALS
8. If the Fiscal Officer clicks Approve, the following Question will display:
“One or more of the PREQ line items are outside the set tolerances. “
Error messages will be displayed.
Each line will have an “accept value” box if line item is outside the set tolerances
based on cost source variances.
Cost source variances will be determined by each institution.
i. If FO approves payment (higher price or quantity)determined by Purchase
Order values. Clicking the “accept Value” button and then clicking
“Approve” will send PREQ to Awaiting Overage Approval – Purchasing. The
PREQ will route to the Purchasing Processor group for Approval.
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9. If the Purchasing Processor clicks ‘Approve”, the following Question will display:
“One or more of the PREQ line items is outside the set tolerance.
Error messages will be displayed.
Each line will have an “accept value” box if line item is outside the set tolerances
based on cost source variances.
If Purchasing “accepts value” and clicks “Approve” the PREQ will route to Accounts
Payable.
10. For each of the above approvals an annotation will be added to the route log
indicating each areas approval of the overage.
Approval to exceed the Unit Cost tolerance has been granted by <PACS> or <FISCAL
OFFICER>
11. The Fiscal Officer and Purchasing Processor will have two additional buttons when the
PREQ is in the Awaiting Overage Approval statuses. The Disapprove button will not
display
DISAPPROVED
12. Overage Disapproved – means all lines should be short paid.
a. If the Fiscal Officer clicks this button:
i. An explanation box will display
ii. The PREQ will be sent to the Initiator’s (AP Specialist) action list.
iii. The PREQ will be editable and the AP Specialist will short pay the entire
invoice.
b. If the Purchasing Office clicks this button:
i. An explanation box will display.
ii. The Buyer will add a note explaining why they are disapproving.
iii. The explanation will be added to the Notes section.
iv. An FYI will be sent to the Fiscal Officer letting them know the Purchasing
Office disapproved the overage.
v. The PREQ will route to the Initiator’s (AP Specialist) Action List.
vi. The PREQ will be editable and the AP Specialist will short pay the entire
invoice.
13. Overage Approved with Changes – means some of the lines are approved to be
overpaid.
a. If the Fiscal Officer clicks this button:
i. An explanation box will display.
ii. The Fiscal Officer will indicate which lines should be overpaid.
iii. The explanation will be added to the Notes.
iv. The PREQ will route to the Purchasing Processor group for Approval.
b. If the Purchasing Office clicks this button they are changing what the Fiscal Officer
has approved.
i. An explanation box will display.
ii. The buyer will indicate what lines are approved for over pay.
iii. The explanation will be added to the Notes.
iv. An FYI will be sent to the Fiscal Officer.
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v. The PREQ will route to the Initiator (AP Specialist).
vi. The AP Specialist will pay the PREQ according to the Buyers instructions.
14. The AP Processor should receive the PREQ back into their action list after it has
routed to the Fiscal Officer and Buyer and should be editable when they access it.
Their approval completes the PREQ. Additional approvals by the Fiscal Officer are not
required.
15. The Auto approval job should not pay PREQs when they are in the new statuses.
16. PREQs generated from EIRTs where the Specialist has approved unit prices outside of
the variance will add the same explanatory notes and drop into the routing explained
above.
17. When “accept Value” button is clicked the PREQ will advance in workflow no matter
the price or quantity.
18. The “accept value” button will appear on the fields of the PREQ to mimic the fields
as they apprear on the EIRT doc.
PARAMETER
19. If parameter (COST_SOURCE_VALIDATIONS)is turned on and an EIRT is generated
then PREQ will be in AP Action list.
a. Status will be Enroute
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PREQ Flowchart
Ø
EIRT is created.
Ø
Ø
Ø
Create PREQ.
Calculate.
Compare each line to Cost
Source Table to determine
Allowable Variance.
Calculate
Or
Batch
PREQ follows
normal
process.
No
Yes
Yes
Ø
Ø
Ø
Ø
Submit.
Note added to PREQ.
Routes to Fiscal Officer.
Status: Awaiting Overage Approval –
Fiscal Officer.
No
Yes
Display Question
Prompt:
PREQ contains
overages - OK?
Yes
Approve?
Approve
Overage with
Changes
No
No
Disapprove
Overage
Yes
Ø
Ø
Yes
Routes to PACS.
Status: Awaiting Overage
Approval – Purchasing.
Display input box
so the user can
indicate which
lines can be
overpaid.
No
Display Question
Prompt:
PREQ contains
overages - OK?
Yes
Approve?
No
Approve
Overage with
Changes?
No
Disapprove
Overage?
Yes
Display input box
so the user can
indicate which
lines can be
overpaid.
Yes
Yes
Send FYI to Fiscal
Officer.
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Questions/Issues
1. Can a routing for approval be sent to go to the buyer on the PO after the A/P specialist has
submitted the PREQ and answered “Y” to the warning? Yes – we are adding new route nodes.
2. If the Fiscal Officer approves the PREQ to over pay, do they need to approve again? No.
Cost Source
Upper Price %
Lower Price %
Upper QTY %
Estimate
Quote
Contract
Construction
Shipping Variance
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Freight
Parameter
Active
Indicator
Accounts Payable/
Calculate
Process Flow: Invoice Match
Author: Merriott
Page 1 of 2
Invoice
Calculate
Or
Batch?
PREQ validations
Are in place
Calculate
Yes
PREQ
Validation/
Cost Source Table
Match?
Batch
Department Office
Batch
Approve
PREQ
Routes to Purchasing
Disapprove
PREQ
Routes to
Accounts Payable
A
FO
Overages
Parameter
Cost Source
PREQ Validations
PREQ
Routes to
Accounts
Payable
A
Match?
No
Parm
On or OFF
On
EIRT
C
AP Short Pays
per instructions
Accounts
Payable pays
overages and
Doc is FINAL
Approve
No
PREQ
Routes to
Accounts
Payable
PREQ
In AP Review
PREQ
Is FINAL
End
End
AP Short Pays
per instructions
ebsp.msu.edu
Copyright ©2008 Michigan State University. All rights reserved.
7/13/2017 3:53:00 PM
No
Approve
Or
Disapprove
C
Purchasing
Overages
PREQ Nightly
Batch Run
End
PREQ
Routed to
FO
YES
Purchasing
Purchasing
w/Overages
PREQ
In AP
Review
Yes
PREQ Creation
11/10/2011
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