ppl's accounts payable process
DESCRIPTION
PPL's Account's Payable process has gone through a major transformation in the last decade with the new technologies and process improvement. Jeff Joseph describes most of the implementation benefits that have come to pass in the past five years.TRANSCRIPT
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
11
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
Jeff Joseph, CAPP, CPCPJeff Joseph, CAPP, CPCP
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
22
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
PPLPPL’’ss AccountAccount’’s Payable s Payable process has gone through a process has gone through a major transformation in the major transformation in the last decade with the use of last decade with the use of new technologies and new technologies and process improvement. Most process improvement. Most of the implementation of the implementation benefits have been realized benefits have been realized in the past 5 years.in the past 5 years.
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
33
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
1997implemented
PeopleSoft A/P and a One
Card Program
1998reviewed the
flow of all paper
1999implemented
front-endimaging forPO invoices
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
44
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
2000increased imaging
for all invoicesand implemented
electronic workflow& approvals
2001increased use of
electronic workflow& approvals
2002increased use of
electronic workflow& approvals
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
55
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
2003upgraded
imaging system
2004enforced
purchasing policies(> $3000)
2005pushed corp. card
use and startedPO flip
2004
paper52%
corp card27%
batch18%
electronic3%
2005
paper49%
corp card30%
batch17%
electronic4%
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
66
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
2006mandated use of
corp. card (bus. exp., food,
low dollar, water)
2007Changed purchasing
policy, mandated e-approval,
Implemented DMR& moved A/P dept.
2008implemented
utility billsolution
2006
paper47%
corp card31%
batch16%
electronic6%
2007
paper42%
batch16%
corp card33%
electronic9%
2008
paper39%
corp card32%
batch18%
electronic11%
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
77
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
2009added contract flip,
implementedtelecommunication
bill solution
2010implementedPassport A/P
2011implementing
IntegratedCash System
2009
paper37%
corp card27%
batch22%
electronic14% Note: Paper will further decrease
as more batch loads are added and electronic invoicing increases.
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
88
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
The Years at a Glance
Accounts Payable YEAR-TO-DATE Transactions
paper corp card batch electronic
Type of Transaction
2004200520062007200820092010
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
99
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
Batch Loaded
Pre-Approved Vouchers
Some PPL systems, such as the customer system, are considered self invoicing and send a file to the A/P
system to create a pre-approved voucher for payment, such as customer refunds.
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
1010
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
Front Office ConceptFront Office Concept
PPL took the pre-approved process further into a Front Office Concept. PPL systems that send transactions for disbursements are now considered front office payable
systems. The files are sent to Treasury for disbursement, no longer requiring involvement from a corporate
accounts payable department.
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
1111
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
Supply Chain Supply Chain Accounts PayableAccounts Payable
With front office departments taking responsibility for their own transactions and payable systems, the need for a
corporate A/P department is no longer required. In 2007, the A/P department was moved to Supply Chain along with the invoices for PO’s, service contracts, and misc transactions.
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
1212
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
Miscellaneous Miscellaneous TransactionsTransactions
While the miscellaneous transactions are currently in Supply Chain, this is only temporary until PPLSolutions
implements the Miscellaneous Payable System to handle these transactions. The same system is currently handling miscellaneous billing transactions. PPLSolutions will be the
front office for all miscellaneous transactions.
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
1313
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
Corporate policy 601... Exceptions – The following list of commodities and services need not be processed through Supply Chain for acquisition and can be obtained without a Passport Contract or Purchase Order. All other procurements must follow this policy.
Types of Miscellaneous Transactions not Requiring an Order/Contract
•Fees, Dues, Memberships, & Subscriptions•Wholesale Marketing and Energy Trading •Fossil Fuel •Synfuel•Government Payments (including taxes)•Real Estate Transactions•Charitable Contributions/Donations•Corporate Claims/Settlements•Corporate Investments/Funding•Refunds/Reimbursements•Medical Fees (not associated with a Passport contract)•Freight (not associated with a Passport contract)
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
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2004
purchase orders 31%
contracts 12%
customer refunds 13%
misc. 33%
cc bank pay. 2%
coal 2%
payroll w /h 7%
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
All Payables Transactions
future
purchase orders34%
misc.5%
contracts24%customer refunds
12%
cc bank pay.2%
coal1%
payroll w /h6%
fuel for vehicles2%
real estate taxes1%
phone bills4%
utility bills4%energy trading
2%
WRAP program3%
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
1515
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
Supply Chain Transactions
>>>eCommerce<<<
PO Invoices - Percent Electronic
0%
10%
20%
30%
40%
50%
60%
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58
Month (starting January 2005)
Perc
ent
Contract Invoices - Percent Electronic
0%
5%
10%
15%
20%
25%
1 2 3 4 5 6 7 8 9 10
Month (starting January 2009)
Perc
ent
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
1616
PPLPPL’’s Accounts Payable Processs Accounts Payable Process
Straight Through Process Straight Through Process
Third Party – External Web Invoicing
- File from Vendor
- PO Flip
- Contract Flip (with image)
Internal Digital Mailroom
Paper invoices are converted to electronic
data (with image)
Supply Chain A/P System
- Systematic Matching
- Electronic Approval
- Resolutions
Other Front Offices
Non-Supply Chain Transactions
Disbursing System
Payments are made by EFT or Check
(Payment Information)
Vendor Internet Inquiry
Employee Intranet Inquiry
Reporting Database
Finanace Transformation Finanace Transformation (September 2010)(September 2010)
Eliminate 50% of Paper Invoices through Eliminate 50% of Paper Invoices through Changed Policies, Procedures, Processes and Changed Policies, Procedures, Processes and
TechnologyTechnology
1717