Procure-to-Pay Lifecycle - Statewide Financial System - New York ...

Procure-to-Pay Lifecycle 

Contract/PO/Voucher Lifecycle 

November 21, 2012 

Statewide Financial System 1

Session Objectives 

• Understand procurement contract functionality in SFS 

• Provide End-to-End Procure-to-Pay Scenario 

• Associating transactions to one another 

• Understand updates that occur to Contract Balances and 

Budget Ledgers as transactions move through the 

Procure-to-Pay Lifecycle. 

• Understand the process to make corrections to contract 

related purchase orders and vouchers. 

Disclaimer: The examples used in this presentation are for demonstration purposes 

only. Please refer to the GFO for guidance on OSC’s policies and procedures. 


• Basic Concepts 

Content 

• Relationship Between Contracts/POs and Vouchers 

• Budget Checking in SFS 

• End-to-End Process 

• Contract->PO->Receipt->Voucher->Amendment 

• Transaction Table summarizing effects of transactions on contract 

balances and KK (Budget) Ledgers 

• Screen prints of each transaction with before and after screen 

prints of contract balances, budget and matching status fields, and 

Commitment Control (KK) ledgers (as applicable) 

• PO and Voucher Corrections 

• POs associated to the wrong contract 

• Correction of Contract/PO related Payments made in SFS vs. 

Contract/PO related Payments made in CAS 


Basic Conceptual Relationship Between 

Contracts, POs and Vouchers 

Statewide Financial System 

4

Budget Checking POs and Vouchers in SFS 


End-to-End Process 

Tools Used for Scenarios 

‣ Contracts Events Page: Displays contract related balances 

‣ Contracts Document Status Page: Displays POs, Receipts and Vouchers 

associated with the contract 

‣ Budget Overview Page: Displays a summary of the encumbrance and 

expenditure balances* for an appropriation or segregation 

*Balances are updated based on PO/Voucher Budget Check activity. 

‣ Budget Activity Log Page: Displays POs with related encumbrance activity 

and vouchers with related expenditure activity 

‣ Transaction Pages: Contracts, POs, Receipts and Vouchers. Shown upon 

entry of transaction and to show changes in status after processes are run 

‣ Transaction Table: Summarizing effects of PO and Voucher transactions 

on contract balances and KK (Budget) Ledgers 


6

Contract Events Page Definitions 

Field Description Effected by 

Maximum Amount Total amount that the contract should not exceed Contract Activity 

Released 

Remaining 

Total amount that has been released for this 

contract ( PO amounts + converted LTD) 

Total amount remaining on this contract (Maximum 

Amount – Total Released Amount). This is the same 

as the unencumbered balance in CAS. 

PO Activity 

(Creation of the PO, PO Cancel, 

PO Change and PO Close during lapsing) 

Contract and PO Activity 

Year-to-Date Expenditures YTD expenditures for fiscal year Voucher Activity 

(upon Budget Check) 

Life-to-Date Expenditures 

Total expenditures to date on the contract (this 

includes converted expenditures) 

Voucher Budget Check 

(upon Budget Check) 


Contract/PO/Voucher Conceptual Processing Overview 


End to End Scenario with No Errors 

Events 

Starting 

Balance 

Contract 

Created 

Contract for 

$25,000 

PO 

Created/Saved 

PO 

Budget 

Checked 

PO# 1 for $5,000 

Voucher #1 

Budget 

Checked 

Voucher for 

$5,000 

created 

Contract 

Amendment 

Amendment for 

$15,000 created 

PO Against the 

Amendment 

PO# 2 for 

$15,000 

Segregation Amount 964,498.00 964,498.00 964,498.00 964,498.00 964,498.00 964,498.00 964,498.00 

KK(Segregation) 

Encumbrance 0.00 0.00 0.00 5,000.00 0.00 0.00 15,000.00 

Expenditure 0.00 0.00 0.00 0.00 5,000.00 5,000.00 5,000.00 

Available Budget 964,498.00 964,498.00 964,498.00 959,498.00 959,498.00 959,498.00 944,498.00 

Maximum Amount 0.00 25,000.00 25,000.00 25,000.00 25,000.00 40,000.00 40,000.00 

Contract Events 

Released 0.00 0.00 5,000.00 5,000.00 5,000.00 5,000.00 20,000.00 

Remaining 0.00 25,000.00 20,000.00 20,000.00 20,000.00 35,000.00 20,000.00 

YTD 0.00 0.00 0.00 0.00 5,000.00 5,000.00 5,000.00 

LTD 0.00 0.00 0.00 0.00 5,000.00 5,000.00 5,000.00 

PO# 1 Balance 

Contract Sequence 

0 

PO #2 Balance 

Contract Sequence 

1 

Encumbrance 0.00 0.00 0.00 5,000.00 5,000.00 0.00 N/A 

Expenditure 0.00 0.00 0.00 0.00 5,000.00 5,000.00 N/A 

Encumbrance 

Balance 0.00 0.00 0.00 5,000.00 0.00 0.00 N/A 

Encumbrance 0.00 0.00 N/A N/A N/A 0.00 15,000.00 

Expenditure 0.00 0.00 N/A N/A N/A 0.00 0.00 

Encumbrance 

Balance 0.00 0.00 N/A N/A N/A 0.00 15,000.00 


Budget Overview Before Transactions 

SFS Financials Commitment Control Review Budget Activities Budgets Overview 


Procurement Contract 


Enter and Save a Procurement Contract 

SFS Financials Purchasing Procurement Contracts Add/Update Contracts Add a New Value 

Explained 

in the next 

slide 

Always click 

on this link 

to confirm 

association 

of your BU 

with this 

contract 


Contract Header: Order Contract Options 

Check Box 

Field Name 

Default 

Change to…. 

Reason 

Allow multi currency 

PO 

Checked Unchecked Uncheck box. New York State uses USD currency type. 

Corporate Contract 

Checked 

Unchecked (if 

contract is used 

exclusively by your 

agency) 

If creating a contract for use by your BU only. 

Always click on the “PO Defaults” link when creating a contract. This will 

confirm association of your BU to the contract. 

Checked 

Do not override 

default (for multiple 

agency use) 

If the contract is for multiple BU use. 

Click on “PO Defaults” link to add multiple BUs to this contract. 

Lock Chartfields Unchecked N/A No business purpose required by NYS 

Allow open item 

reference 

Adjust vendor pricing 

first 

Price can be changed 

on order 

Unchecked Checked Allows changes to Adjust Vendor Pricing first and Price Can Be Changed 

on Order. 

This option should always be checked in order to eliminate the need to 

enter contract lines. 

Unchecked N/A No business purpose required by NYS 

Unchecked Unchecked if only quantity changes will be made. 

Unchecked Checked If your business need is to create purchase order changes either by 

quantity or dollar amount 

Must Use Contract 

Rate date 

Unchecked 

Do not override 

default 

No business purpose required by NYS 


13

Contracts for Bulkload Agency 

Legacy Interface Formats PeopleSoft Bulkload Formats Outbound File Extracts 

Contract Transaction 

T212-TRANS-CD – Transaction 

code to add a new contract. 

T213-TRANS-CD – Transaction 

code for changing an existing 

contract. 

Contract Header (COH) 

M061 Contract Master File: 

This Extract contains both 

procurement and revenue 

contracts that are in the 

Purchasing module of SFS. 

The subscribing Source 

System will receive all 

contracts associated with the 

related Business Unit and all 

OGS P-Contracts. The extract 

file contains one row per 

amendment version number. 


Contract Events and Doc Status after Saving a Contract 

SFS Financials Purchasing Procurement Contracts Review Contract Information Events 

SFS Financials Purchasing Procurement Contracts Review Contract Information Document Status 


Contract Status = “Requested PO” 


Purchase Order 


Create and Save First PO Associated with Contract 

SFS Financials Purchasing Purchase Orders Add/Update POs Add a New Value 

Associating the 

PO to Contract 


Purchase Orders for Bulkload Agency 


Encumbrance Charge Transaction 

M161 Transaction History 

T203-TRANS-CD – Transaction code 

to add an encumbrance . 


to change an existing encumbrance. 


to delete an existing encumbrance. 

Purchase Order Header (POH) – Add, 

Change, Cancel 

Purchase Order Line (POL) 

Purchase Order Distribution (POD) 

The file layouts for the M161 

Transaction History Extract File are 

broken down by transaction type: 

• Purchase Orders 

(Encumbrances) 

Transactions must have a valid 

Budget Status or had a valid 

Budget Status in order to display 

on the extract. 

Only changes to or from a Business 

Unit that were updated on a given 

date range (based on frequency 

configuration on the Agency 

Interface Profile) are displayed in 

the extract. 


PO Lines: 

System Defaults for a PO: 

Quantity Based with Receiving Required 

NOTE: For Amount 

Based POs, check this 

box before making 

any other changes 

Defaults consistent 

with a Quantity 

based PO. Matching 

will be done by 

Quantity – consistent 

with a Quantity 

Based PO 

By default, Amount 

Only is unchecked. 

If this check box is 

checked, defaults 

will change to 

Liquidate, 

Distribute and 

match by amount. 

PO Header: 

By default, Receiving is 

Required. 


Matching on PO Header and Line 

PO Header: 

Defaults to Require 

Matching. DO NOT 

CHANGE DEFAULTS. 

PO Line: 

Default is to Require 

Full Match. DO NOT 



Contract Events and Doc Status after PO Save* 


Increases by 

Amount of PO 

Decreased by 

Amount of PO 


*Commitment Control Budget Overview balances are not updated upon PO Save. They are updated after PO Budget Check (see following slides) 


Budget Overview Prior to PO Budget Check 

PO Header: 


Encumbrance = $0 


Budget Overview After PO Budget Check 

PO Header: 


Upon PO 

Budget Check, 

Encumbrance 

is created in 

the KK Ledger 


PO Transaction Detail: Encumbrance 

SFS Financials Commitment Control Review Budget Activities Activity Log 

Amount of 

Encumbrance related 

to PO 


PO Budget Check: M101 Encumbrance MF 

M101 Encumbrance Master File 

• In SFS, an encumbrance is recognized as a Purchase Order. The Encumbrance 

Master File Extract will include a row for every Purchase Order Distribution line. 

Transactions must have a valid Budget Status or had a valid Budget Status in 

order to display on the extract. 


PO Budget Check: M041 Segregation MF 

M041 Segregation Master File 

• The M041 is a summary record for each unique Budget. All SFS Chartfields are included 

and can be used to uniquely identify the Budget information regardless if the Budget is 

Statewide, agency-specific, or DOB ledger. 

• Each record summarizes the Life-to-Date (LTD) and Year-to-Date (YTD) expenditures and 

disbursements across multiple budget years (budget periods). 


PO Budget Check: M011 Appropriation MF 

M011 Appropriation Master File 

• The M011 is a summary record for each Appropriation. A unique appropriation is 

identified by the combination of Chartfield valued for: 

• Business Unit; 

• Department ID; 

• Fund; 

• Program; 

• Account; and 

• Budget Reference 

• Each record summarizes the Life-to-Date (LTD) and Year-to-Date (YTD) expenditures 

across multiple budget years (budget periods) 


PO Submitted for Approval 

PO Header: 


PO in Worklist and Approved 

SFS Financials Worklist 

PO Header: 


PO is Dispatched 

PO Header: 

POs must be in a 

Dispatched status in 

order to be 

associated with a 

Voucher 


Contract Events and Doc Status after PO is Dispatched 




Receipt 


Enter and Save a Receipt 

SFS Financials Purchasing Receipts Add/Update Receipts 


Matching Default on Receipt Header = “To Match” 

Default is “To Match” if 

Receiving Required 

remained in place on the PO. 

DO NOT CHANGE DEFAULTS. 


Matching Default on Receipt Line = “Y” 

Default for Match = “Y” 

if Receiving Required 

remained in place on 

the PO. DO NOT 



Contract Document Status Page after Receipt Saved 


Voucher 


Create and Save Voucher Associated with PO 

SFS Financials Accounts Payable Vouchers Add/Update 

Select PO Receipt 

to associate 

voucher to a PO 

and the Receipt 

NOTE: Only POs in a status of 

“Dispatched” are available for 

association with Vouchers 


Vouchers for Bulkload Agency 


Voucher Payment Transaction (T302) 

Voucher Charge Transaction (T304) 

Voucher Header (VOH) 

Voucher Line (VOL) 

Voucher Distribution (VOD) 

M161 Transaction History - The file 

layouts for the M161 Transaction 

History Extract file are broken 

down by transaction type: 

• Vouchers 


Transaction/Payment History for Bulkload Agency 

M161 Transaction History Extract File 

• The file layouts for the M161 Transaction History Extract File are broken down by 

transaction type: 

• Purchase Orders (Encumbrances); 

• Vouchers/Expense Reports/Refund of Appropriations; 

• Disbursements (from Vouchers/Expense Reports/Refund of 

Appropriations/Journals); 

• Budget and GL Journals/Revenue Receipts/Cost Centers; and 

• Payroll. 

• Transactions must have a valid Budget Status in order to display on the extract. 

• Only charges to or from a Business Unit that was updated on a given date range 

(based on frequency configuration on the Agency Interface profile) are displayed 

on the extract. 


Voucher Saved 

Vouchers 

cannot be 

submitted for 

approval until 

budget 

exceptions 

and match 

exceptions 

have been 

resolved. 


Voucher Lifecycle 


43

Matching Default on Voucher Header Attributes Tab 

Default for 

Match Status 

is “Ready”. 

DO NOT 

CHANGE 

DEFAULTS. 


Matching on Voucher Lines 

Default for Match Option 

is “Full Match”. DO NOT 



Budget Status after Voucher Budget Check 


Contract Events and Doc Status 

after Voucher Budget Check 


YTD & LTD Expenditures 

increased by amount of 

the Voucher 



Budget Overview after Voucher Budget Check 


Upon Voucher Budget 

Check, Encumbrance is 

liquidated and are 

Expenditures recorded 

in KK Ledgers 


Voucher Transaction Detail: 

Encumbrance Liquidated/Expense Recorded 



Match Status on Voucher after Matching 

Voucher Summary Tab: 


Match Status on Voucher Attributes Tab 

Voucher Lines: 

Voucher Header/Attributes: 


Match Status on PO Header after Matching 

PO Header: 


Match Status on Receipt Header after Matching 


Voucher Approved 


Transaction/Payment History for Bulkload Agency 

M171 Payment History Extract File 

• The M171 extract contains a history of all payments made by the Office of the 

State Comptroller (OSC) to vendors, individuals, employees and municipalities. 

This file is generated daily and reflects all transactions processed for that day 

(recording all the daily payments made by OSC). 


Contract Amendment 


Entering a Contract Amendment 

SFS Financials Purchasing Procurement Contracts Amendments 


Contract Amendment Pending Approval 

SFS Financials Purchasing Procurement Contracts Add/Update Contracts 


Contract Amendment Approved 



Contract Updated after Amendment approved by OSC 


Maximum Amount 

and Remaining 

Amount increased as 

a result of Approved 

Amendment 



Choose which Contract Sequence to associate to a PO 


Enter and Save Second PO 

SFS Financials Purchasing Purchase Orders Add/Update POs Add a New Value 


Contract Updated after PO Saved 




Budget Overview Prior to PO Budget Check 

PO Header: 

SFS Financials Purchasing Purchase Orders Add/Update POs 



Budget Overview After PO Budget Check 

PO Header: 

SFS Financials Purchasing Purchase Orders Add/Update POs 



PO Detail and Encumbrance After PO Budget Check 


SFS Financials Purchasing Purchase Orders Review PO Information Activity Summary 


PO Approved 

Next Steps: Create and Process Voucher as shown in previous slides 


Applicable SFS Job Aids & Other Resource Materials 

• JAA-AP000-011: Basic Conceptual Relationship between Contracts, Purchase Orders 

and Vouchers 

• Quick Start Guide for Creating a Contract 

• JAA-CN210-002: Creating a Contract 

• JAA-CN210-001: Amending a Contract 

• Quick Start Guide for Reviewing Procurement Contract Data 

• JAA-CN210-004: Encumbering a Contract (or) JAA-PO220-001: Creating a Purchase 

Order 

• Quick Start Guide for Associating a Purchase Order to a Contract 

• JAA-AP205-010: Entering a Regular Voucher from a PO and a Receipt 

• JAA-AP205-007: Voucher Lifecycle 


PO Corrections to 

POs and PO Related Vouchers 


Corrections 

• POs Associated with the Wrong Contract 

• How to find incorrectly referenced POs (POs associated with wrong 

contract) 

• How to fix POs associated with the wrong contract that has no 

payment activity 

• How to fix POs associated with the wrong contract that has already 

been vouchered against 

• Difference between fixes related to CAS payments and SFS 

payments 

• SFS: Job Aid JAA-AP000-010 entitled “Correction of Vouchers 

Related to a PO Following a Payment” 

• CAS: Job Aid JAA-PO000-016 entitled “Re-Class Converted 

Expenditures against a Contract originally created in CAS (being 

finalized – not yet posted) 


POs Associated with the Wrong Contract 

• How to find incorrectly referenced POs (POs associated with wrong contract) 

• Contract Document Status Page 

o Purchasing Procurement Contracts Review Contract Information Document 

Status 

o Displays all documents (including POs) associated with a given contract 

• PO Document Status Page 

o Purchasing Purchase Orders Review PO Information Document Status 

o Displays the contract that a PO is associated to (if applicable) 

• How to fix POs associated with the wrong contract 

that have no payment activity 

1. Cancel the original PO (associated with the wrong contract) 

2. Enter a new PO associated with the correct contract 

• How to fix POs associated with the wrong contract 

that have already been vouchered against 

• If the payment was made in SFS: 

o Job Aid JAA-AP000-010 entitled “Correction of Vouchers Related to a PO Following a 

Payment” 

• If the payment was made in CAS: 

o Job Aid JAA-PO000-016 entitled “Re-Class Converted Expenditures against a Contract 

originally created in CAS (being finalized – not yet posted) 


CAS Contract Related Payment Correction Process 

• Vouchers entered in CAS (Pre Go-Live) 

• Possible Reasons for correcting a voucher may include 

o Agencies will sometimes have to correct/update a previously processed 

contract transaction that had used a different funding source. This need 

occurs for various reasons, including reclassification of expenditures in 

which agencies previously used State funding, and have received approval 

to use Federal funding after the conversion of the contract. 

• Bulkload Agencies 

• PO Processor and PO Approver roles are needed to process the PO 

Transactions. 

• AP Processor and AP Approver roles (single level) are needed to process the AP 

Transactions. 

• CAS voucher Correction Process 

• Step 1 – Create a zero dollar PO created against the contract to allow the 

ability to associate a voucher to the contract that will update the funding 

source of the transactions. 

• Step 2 – Add a Regular Voucher associated to the above created zero dollar PO. 

o The voucher should now have two lines and net to a total of $0. 


SFS Contract Related Payment Correction Process 

• Vouchers entered in SFS 

• Possible Reasons for correcting a voucher may include 

o the voucher was not associated to any PO (and therefore contract) 

o the voucher was associated with the wrong PO (and possibly contract) 

• SFS voucher Correction Process 

• Step 1 – Enter a voucher with the “Adjustments” voucher style to process the 

credit memo. The adjustment voucher must have a negative amount equal to 

the amount of the incorrect payment. 

o Bulkload agencies should use their online user role (AP Adjustment 

Processor) to process the Credit Memo in SFS. 

• Step 2 – Enter or bulkload a new regular voucher and associate it with the 

correct PO. If the PO is related to a contract, then contract balances will be 

updated. 

• You may want to contact OSC with the Voucher IDs of the adjustment voucher 

and the new regular voucher and ask that the vouchers be processed together 

so that the transactions net to $0 and do not effect the vendor’s payments. 


Applicable SFS Job Aids 

• Correct payments made in CAS: Job Aid JAA-PO000-016 entitled “Re-Class Converted 

Expenditures against a Contract originally created in CAS (being finalized – not yet 

posted) 

• Correct payments made in SFS: Job Aid JAA-AP000-010 entitled “Correction of 

Vouchers Related to a PO Following a Payment” 

Note: If you have attempted to correct the mistake in another way, SFS staff will need to 

assist your agency to correct the corrections.

Procure-to-Pay Lifecycle - Statewide Financial System - New York ...

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