Integrating Purchase Cards and SAP Paul Muir Manchester City Council
Introduction
Facts and Figures. Smartlink and SAP. – How we did operate.
XiBuy and SAP. – How we are operating.
Next Steps. And Finally. Questions
Facts and Figures
First issued cards in April 2000. – Moved away from the traditional PCard concept.
Spend to date £500m. Number of transactions 1.4m. Saving to date £19m. 1800 cards issued. 450 vendors set-up in SAP as a PCard vendor. Spend against 5000 vendors
Smartlink and SAP Background
Implemented SAP in 2006. – Also implemented Smartlink at the same time. Smartlink enables. – Full integration with SAP. – Automatic cost allocation. Based around card profiles and MCC mapping. Ability to re-allocate expenditure. Reclaim VAT from level 1 vendors.
Smartlink and SAP How It Worked
Use SRM to raise shopping carts. – Via catalogues (2) or describe requirements.
SRM knows if the requisitioner is a PCard holder. – Adds card details to the order. – Sends for approval when appropriate.
Retrospective orders raised for level 1 vendors. Cardholders reconcile at month end using various reports. CCM approve their cardholder transactions . Transactions posted monthly.
Smartlink and SAP Issues
Can’t mix orders from catalogues. Reconciliation problematical for Requisitioners. – Various reports mixture of gross and net. Approvers not approving. Not one process for Requisitioners. – No commitments or goods receipting. Transaction posted at month end.
XiBuy and SAP Why Change ?
Smartlink in its sunset years. Took the decision to upgrade to XiBuy 3. – Added functionality. Complete rethink on how we operate cards. Opened a shared service centre. Introduced a No PO No Pay policy – All purchase orders must be raised and approved in advance on SAP. – Invoices are being returned if no PO number on them. – Transactions from lodge card vendors will be disputed if no PO number on them.
XiBuy and SAP Lodge Cards
Identified 220 vendors to lodge cards with. – Accounts for £48m of spend.
Removing a large number of cards from individuals. – Business case required to keep cards.
One catalogue. One process for Requisitioners. – All shopping carts get approved - commitments. – All shopping carts goods receipted – actual.
Vendors charge lodge card and pass purchase order number. Reconciliation carried out by the shared service centre.
XiBuy and SAP XiBuy Functionality
Automatically matches SAP purchase orders to transactions from vendors and posts. If no exact match, XiBuy proposes purchase orders and transactions that may be a match. Manually match transactions. Cost allocation from the purchase orders. Creates a SAP invoice from the transactions (MIRO) – Just another method of payment.
Links vendors to merchants – updates SAP vendor records (FBL1N)
XiBuy and SAP Walking Plastic
Will be used mainly by non office based staff using level 1 vendors. No retrospective orders raised on SAP. Maintain a manual transaction log and cardholder will reconcile at month end. Passed to CCM for approval and then to the shared service centre. If not received by the shared service centre within the agreed time frame, cards will be withdrawn. Shared service centre will scan and attach invoices for VAT reclaim to the transaction.
To Date and Next Steps
Currently have 32 vendors issued with a lodge card – Next 50 contacted
Cards are being withdrawn from cardholders Looking into giving our travel vendor/taxi vendors a lodge card – different approach (unsupported) Punching out to selected vendors catalogues – Fully automatic process
Testing the latest release of XiBuy – Resolved VAT issues – Allows to post without a goods receipt
And Finally…
“Doing their own thing and being proud of what they do”
Any Questions