Inter-PC Transactions



Summary Information

Who

All EMCO Profit Centre locations exchanging inventory through regular purchasing and sales transaction activity.

Why

To allow any EMCO location to purchase or sell product at any price between participating profit centre locations without the need for Accounts Receivable or Accounts Payable transactions. Inter-PC transaction processing is automated such that the only action required by PC staff is:

1. Buying PC to place Purchase Order

2. Selling PC to enter matching Sales Order (can be automated via EDI-PO)

3. Selling PC to ship product (automatically invoiced nightly)

4. Buying PC to receive product

5. If needed, Buying PC to resolve AP Mismatch (if any) via regular AP processing

If the Selling PC invoice matches the Buying PC purchase within AP Matching Tolerance, no action on the part of PC staff is required to complete the Inter-PC transaction. It is expected that over 95% of Inter-PC transactions will automatically match without any intervention on the part of PC staff.

What

Transactions are available in the system as follows:

Sales:

OE transaction with sales posted to INTER-PC SALES G/L account (196.015) upon invoicing. The OE is marked paid when invoiced and no A/R activity is created. Differences between the selling PC inventory cost and sales price are posted to the INTER-PC PROFIT G/L account (360.003) at the selling location.

Purchases:

PO transaction and posted to INTER-PC PURCHASES G/L account (196.014) when Selling PC sales invoice is automatically loaded as an EDI Vendor AP invoice. The corresponding A/P transaction is available on the regional database ONLY and remains ‘on hold’ until PO received and AP Mismatch (if any) resolved. AP Reconciliation clears the INTER-PC TRADE UNMATCHED G/L account (196.013) and any discrepancies are posted to the INTER-PC PROFIT G/L account (360.003) at the buying location.

When

Inter-PC sales orders, once shipped (OEES), are selected by an automated Invoice Processing job (OEEPI) which creates an EDI AP Invoice that is available to the buying location the following day. The EDI AP Invoice will appear on the ‘AP Pending’ or ‘AP Mismatch’ (APEBR) report until the PO is received (POEI). Provided the PO is received within AP Matching tolerances, the EDI AP invoice will automatically clear the AP Mismatch (APEBR) and Unbooked Receipt (EMRBU) entries.

Summary Information (Cont’d)

Where

Regional databases will retain OE and PO transaction detail. The buying location will also have an AP invoice for the purchase order that remains on the regional database ONLY which is automatically inactivated (off ‘hold’; and ‘paid’) when AP Matching completed. The GL transactions are available at both the regional and NSC databases. GL sub-ledger reconciliation is available at the regional database level only via OE or PO transactional reporting. The inclusion of Inter-PC transactions in regular sales reporting is optional and can be turned on or off at the discretion of credit staff.

Security

Full

Selling Location:

- Sales order processing requires staff with access to OEET, OEEPP, OEES

Buying Location:

- Purchase order processing requires staff with access to POET, POEPP, POEI, APSE

- AP Reconciliation processing requires staff with access to POIO, APIT, APEBC, APEBR, APET etc.

One-time setup by NSC staff:

Note: Inter-PC transaction setup requires access to administrative screens including:

- GLSA, ICSEG – setup of new GL Accounts

- SASTT – type T – new terms “EMCO”

- APSV,ARSC,SASOO – setup of GL Account defaults

To minimize NSC workload to maintain Inter-PC setup for both existing and new PCs, access to the following tools for NSC IS staff is necessary:

- EMSIW – utility for setup of new PCs

- UTRU – utilities to maintain existing Vendor (APSV) and Customer (ARSC) data

Prerequisites

Customer numbers and vendor numbers need to be set up for any PC location using the process. The Inter-PC processes is triggered by changing the ‘Terms’ type on both the customer and vendor as follows:

‘EMCO’ – turns on this Inter-PC process

‘WHSE’ – turns on the Inter-branch process (HEARS process being replaced by ‘Inter-PC’)

‘COMP’ – (no longer available) - was Inter-Company process used with CCTF locations

Effects

The Inter-PC process will eliminate the HEARS Inter-branch matching reporting as transactions are processed. Inter-PC locations become regular customers and vendors, but without the customary account receivable and account payable processing.

Overview

Process Overview

The Inter-PC process is usually initiated by the buying PC location. Both the buying and the selling location should have the SKU setup in their inventory (i.e. ICSW screen) for stocked products. If not, a non-stock product could be used, but it is more efficient to download the SKU from the National Catalog at both the selling and buying locations

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System Setup Requirements

The Inter-PC processing is largely automated provided the correct setup is in place in both the regional and NSC databases.

Initial Setup by NSC Finance and NSC IT staff:

GLSA – GL accounts will be setup for every PC at every regional and NSC database:

• *.196.013 Inter-PC Trade Unmatched GL Account

• *.196.014 Inter-PC Purchases GL Account

• *.196.015 Inter-PC Sales GL Account

• *.360.003 Inter-PC Profit GL Account

SASTT “T” – New Customer and Vendor terms “emco” setup as Net with no terms or discount.

SASOO “intb” OperID – default GL Account override for AP Trade Unmatched

NOTE:

NSC IT staff will adjust all existing Inter-PC customer and vendor accounts when the Inter-PC process is implemented (3-digit customer and vendor accounts on all regional databases).

New PC Setup by NSC staff

Contact TREND Support whenever a new PC location is opened. TREND Support is responsible for using the EMSIW screen to setup the Inter-PC location setup in the system. Contact Vendor Support if the PC location is not yet setup as a Vendor (APSV) in the system.

Existing PC Maintenance:

Automated utilities run in the system daily to ensure that the integrity of Inter-PC setup is maintained. The relevant screen fields updated include:

a) Inter-PC Vendor Setup – UTRU utap68113

• APSV Vendor screen:

F6-Required: Terms = ‘emco’; F8-G/L Accts: AP Ctrl GL = *.196.014; Expense GL = *.196.013

F9-Taxes = ‘U’nreg, ‘E’xempt

Note: only TREND ID ‘9zzz’ is allowed access to change Vendor terms in APSV screen.

• APSE Vendor Electronic Setup screen:

PO SendBy = (PC preference); Partner ID = must be same as Vendor ID; EDIUser3 = ‘ediinvoice’

b) Inter-PC Customer Setup – UTRU utar68113

• ARSC Customer screen and ARSS Customer Ship-to screen:

F6-Required: Terms = ‘emco’; Ctrl GL Aacct = *.196.015; Income GL Acct: *.360.003

F8-Taxes = ‘Tax Free’

• ARSE Customer Electronic Setup screen:

Invoice SendBy = ‘e’; Partner ID = must be same as Customer ID

Inter-PC Example

To illustrate how the Inter-PC processing works in the system, the following example was prepared in a test system.

Buying PC location: EMCO #370 London, Leathorne St., London, ON

Selling PC location: EMCO #322 GTA Residential Plumbing, Pippin Rd, Vaughan, ON

Step 1: Buying PC Location enters a PO

a) POET – Add new Purchase Order

- Vendor #: 322 (Selling PC #)

- To: and Bill: 370 (Buying PC Warehouse ID)

- Verify that Terms are ‘emco’ in the F6 Header screen

- PC staff can use full PO functionality including notes, lines, add-ons etc.

- Costs used on PO line items should match the prices quoted by the selling PC.

- Example PO# is 725296-00.

b) POET – PO Print

- When the PO is ready to be sent to the Selling location, use F10-Print to send the PO via e-mail, fax, EDI or paper print-out as per Selling location preference (APSE screen).

- Note: if PO sent via EDI, the PO can be automatically loaded as a Sales Order ‘Quote’ at the selling location PC. Contact NSC IT to enable this functionality.

Inter-PC Example (Cont’d)

Step 2: Selling PC Location enters an OE

Inter-PC OEs are entered through OEET the same as for any other sales order. EDI POs can be automatically loaded as a sales order if desired.

a) OEET – Add new Sales Order

- Customer #: 370 (Buying PC #)

- Customer PO#: MUST BE buying branch PO# (i.e. 725296; omit ‘-‘ and suffix)

- Whse: 322 (Selling PC warehouse ID)

- Verify that Terms are ‘emco’ in the F6 Header screen

- PC staff can use full OE functionality including notes, lines, add-ons etc.

- Prices used on OE line items are at Selling PC’s discretion, BUT if pricing is outside of AP Matching tolerance levels when matched to buying PC PO will create a discrepancy that the buying PC must resolve.

- Any variance between the line item cost and sales price (GP margin) will be posted to the Selling location Inter-PC Profit GL account (360.003).

- Example OE# is 2213199-00. Note Price change form $42.0662 to $45.00.

b) OEET – OE Print Picker

- When the OE is ready to be picked and shipped, use the F10 Print to create a picker for warehouse staff to pick and ship the goods.

Inter-PC Example (Cont’d)

Step 3: Selling PC Location Ships OE and nightly invoicing performed

a) OEES – Shipping Feedback

- PC Staff confirm shipped quantities and pricing and move OE to ‘SHP’ stage

b) OEEPI – Invoice Processing

- The nightly automated invoicing will process the shipped Inter-PC sales order.

- No ‘printed’ invoice copy (paper/fax/e-mail) is necessary; the ‘Print to EDI where appropriate’ option is enabled so that an electronic EDI customer invoice is generated. This electronic invoice will be automatically loaded as an AP vendor invoice at the buying PC location the following night.

- The OE Sales Order is automatically moved to PAID stage and no A/R detail is generated (i.e. invoice not shown in ARIT screen).

- Sales amount of invoice is posted to the Inter-PC Sales GL Acct: 196.015

- Cost of Goods Sold amount is posted to Inventory GL Acct: 130.XXX (NS: 129.XXX)

- GP margin on Invoice is posted to Inter-PC Profit GL Acct: 360.003

- Example Jrnl# 30836642 (OEEJ journal print)

Inter-PC Example (Cont’d)

Step 4: Buying PC Location Receives Product and matches to AP Invoice

a) POEI – Receipt of Inventory

- PC Staff confirm quantities and pricing and receive product

- The Invoice # shown on the Packing slip is the Selling PC ‘AP Invoice #’. PC staff may want to see if the Invoice is already loaded to confirm quantities and pricing PRIOR to completion of the receiving transaction.

- The Selling PC ‘Vendor AP Invoice’ (PC=322; Inv#=2213199-00) should match the packing slip exactly. Once the AP Invoice is loaded into the Buying PC location system, the AP Invoice is visible as follows:

i) APIT screen: Enter Vendor#, Invoice# and type ‘IN’ (invoice)

ii) APEBR – Mismatch Report: Message will be: “PO NOT RECEIVED”

iii) AP Imaging system: Search by Invoice# to find ‘EDI INVOICE’

Inter-PC Example (Cont’d)

Step 5: Automated AP Invoice Load

a) EDEPI/APEBU – Automated AP Invoice Load

No action on the part of PC Staff is required to enter the Selling PC AP Invoice into the system. The AP Invoice is automatically loaded into the system the night following invoice processing at the Selling PC location. Please allow 72 hours after the date shown on the packing slip to allow for the Selling PC location to invoice the sales order and for all regularly scheduled nightly systems processing to complete. If you still can not find the AP Invoice, please check with the Selling branch to verify that they have invoiced the corresponding sales order before contacting NSC AP or IT department staff. Please do NOT manually enter the AP Invoice in the APET screen unless directed to do so by NSC AP staff.

Purchase Order Receiving Journal (POEJ)

Automated AP Invoice Load Journal (APEBU)

Inter-PC Example (Cont’d)

Step 6: AP Reconciliation – PO Matching/Discrepancy

a) APEBR – Automated AP Reconciliation and Mismatch Report

EMCO expects that over 90% of Inter-PC transactions will automatically match requiring no further action on the part of PC staff. In this case, the Buying PC location Purchase Order will be fully costed (CST Stage) and the un-booked Receipts value cleared via G/L entries.

The only time PC staff action is required is if the PO receipt does not match the Selling PC location AP Invoice within AP Matching tolerance (i.e. pricing variance, short shipments, unexpected extra charges/product etc.). In this case, the AP Mismatch Report will list the Selling PC Invoice and the Mismatch reason in the ‘Comments’ column of the report. The AP invoice remains active in ‘dispute’ status (APIT screen).

b) APEBC – PO Costing Batch Update Posting

Discrepancies from the AP Matching process are resolved using the regular AP Mismatch resolution processes commonly used with all EMCO Vendors. Contact NSC AP ‘Problem Solver Support’ for assistance with AP Mismatch resolution if required. Please note that any discrepancies will be cleared to the INTER-PC PROFIT GL Account (360.003).

Inter-PC Example (Cont’d)

General Ledger Posting Summary (Step 1 – 6)

Note:

The Merchandise Adjustment GL Posting only occurs if there is a discrepancy between the OE and PO amounts.

1. If the discrepancy is within AP Matching tolerance (i.e. under $25.00), the system automatically posts to the ‘INTER-PC PROFIT’ GL (360.003) via the APEBR process.

2. If the discrepancy is outside of AP Matching tolerances, PC staff action to resolve the AP Mismatch is required via the APEBC screen. Any remaining variances between the Invoice and Purchase Order post to the ‘INTER-PC PROFIT’ GL Account (360.003).

Inter-PC Example (Cont’d)

Step 7: ** OPTIONAL ** Buy PC requests Credit from Selling PC

Note that the Buying location must clear any AP Mismatch variance via APEBC which will post an adjustment to the Buying PC ‘INTER-PC PROFIT’ GL Account (360.003).

Should the Buy PC location wish to charge-back the variance to the Selling PC, a new transaction must be initiated depending on what the credit is for:

a) Return of Product back to Selling PC

The Buying PC can simply ‘sell back’ the unwanted/erroneous product to the Selling PC. The Selling PC would have to enter a Purchase Order (POET type PO) to receive the returned product (the PO# would be the ‘RGA #’). Then the Buying PC would create a matching sales order to the Selling PC to take credit for goods returned.

b) Pricing error by Selling PC – credit adjustment only

- Buying PC must complete the AP Mismatch resolution in the APEBC screen.

- Buying PC enters a PO-CR transaction (POET type RM) – see ‘Job Aid’ for details.

- Buying PC notifies Selling PC of the credit amount (print/fax/e-mail the PO-CR).

- Selling PC enters an OE-CR transaction (OEET type CR) for credit amount

- Buying PC completes PO costing of the PO-CR transaction by entering an AP Miscellaneous Credit (APET type 5) for the credit amount and using the F7-PO Costing to offset the credit value to the Buying PC ‘INTER-PC PROFIT’ GL Account.

General Ledger Posting Summary (Step 7b – credit adjustment only)

Inter-PC Example (Cont’d)

Step 7: ** OPTIONAL ** Buy PC requests Credit from Selling PC

Job Aid – Inter-PC Transactions (available on )

When:

The pricing of AP Invoice (i.e. OE issued by the Selling PC) is greater than the pricing on the Buying PC Purchase Order and the Buying PC’s PO pricing is correct.

How:

Buying PC:

1. The Buying PC has to complete AP invoice costing in the APEBC screen. The variance is automatically posted to the Inter-PC Adjustment account (GL code 360.003).

2. The Buying PC enters a PO-CR transaction (PO type “rm”).

a) Return Reason : PA (RM – PO Adj-No debit note); Leave “AP Invoice #” blank.

b) F7 line – use the “Up arrow” (back-tab) key to access the “N” field; enter type “R”.

c) Select Service SKU “INTERPC” (Product Category “INT”); and enter the $ amount of the credit in the “Price” field.

d) In the “Reason unavailable” field, select “CR” (Invoice correction).

3. Buying PC to notify the Selling PC of the PO-CR (Print, fax, e-mail the PO type “rm”).

Selling PC:

4. The Selling PC creates an OE (type CR) for the dollar value to credit to the Buying PC. NSC recommends entering two lines on the OE-CR (we charged; we should have charged) instead of entering just the net variance amount. On the “we should have charged” line; use SHIFT-F7 in the “Quantity” field to switch credit to be a debit.

5. Send the Credit Note to the Buying PC via fax, email or mail. Note that Invoice Processing will not send the credit via EDI; please notify Buying PC when credit done.

Buying PC

6. The Buying PC must verify the amount of the credit and completes the processing of the PO-CR transaction (PO type “rm”) in the POEI screen. The variance amount is automatically posted to the Inter-PC Adjustment account (GL code 360.003). The PO Unbooked value is cleared in the APET screen by entering a MC transaction (type 5) and using the F7-PO Costing to complete the transaction.

Inter-PC Automated Transaction Processing

Summary

Both the OE sales order invoicing (OEEPI) and AP invoice load (APEBU) are automated system processes maintained by EMCO NSC staff in London, Ontario. PC staff do NOT have to perform any manual actions to process the Inter-PC invoicing. Selling PC staff are responsible to enter the sales order/credit (OEET) and ship the goods (OEES); Buying PC staff are responsible to enter the purchase order (POET) and receive the goods (POEI).

Any selling PC invoices in SHIP stage (OE stage 3) are invoiced nightly and transmitted via EDI to the buying PC and automatically loaded as an ‘AP Invoice’ which matched to the buying PC Purchase Order. Currently, the London NSC distributes EDI invoice at 6:30pm London local time (Eastern Time zone) so that the AP Invoices can be available at the buying PC location the same night. If the Selling PC wishes to have OE Invoice available at the Buying PC the next business day, Inter-PC sales orders must be shipped (OEES) by the following times:

PC Timezone Local Time Regional Database(s)

Newfoundland 7:30pm 114 (Atlantic)

Atlantic 7:00pm 114 (Atlantic)

Eastern 6:00pm 278,372,430 (Ontario), 281 (Quebec)

Central 5:00pm 674 (Midwest)

Mountain 4:00pm 701 (Alberta)

Pacific 3:00pm 891 (BC), 839 (Waterworks)

Selling PC orders shipped after the above local times will still be invoiced nightly. However the corresponding EDI invoice may not be generated prior to the time it can be distributed to the Buying PC (6:30pm London local time), so there would be a delay of one full day before the Buying PC receives the AP Invoice on their system.

Detailed Automated Jobs

(XXX indicates regional db)

XXXIPAP – UTRU utap68113 Vendor 100-999 Inter-PC setup utility

XXXIPAR – UTRU utar68113 Customer 100-999 Inter-PC setup utility

XXXIPINV – OEEPI selecting Customer 100-999 shipped sales orders

403dist – LORH69919 EDI Invoice Distributor Process

XXXedin – EDEPI EDI Vendor AP Invoice Load

XXXupdat – APEBU EDI Vendor AP Invoice GL Posting

XXXjacb – APEBR EDI Vendor AP Invoice PO Reconciliation (PO Costing – AP Mismatch)

References

Programs

TBA

Documents

TBA

Miscellaneous

TBA

Revision History

|Date |Related TB # |Author |Description of Change |

|11/10/10 |70611 |Roger Polgar |Initial documentation of the Inter-PC process |

|04/20/11 |70909 |Roger Polgar |Inter-PC OE Invoicing GL Postings |

|05/04/11 |70910 |Roger Polgar |Inter-PC Setup utilities (EMSIW, UTRU) |

|05/04/11 |70918 |Roger Polgar |GP Check Option to exclude by OE Terms |

|05/18/11 |70922 |Roger Polgar |Inter-PC AP GL Postings |

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AP Reconciliation process runs nightly at buying PC location.

Nightly Invoicing at Selling PC posts sales & creates EDI Invoice

EDI Invoice loaded as vendor AP Invoice at Buying PC. AP invoice remains active until reconciled.

Buying PC receives the product

Selling PC ships the product

Selling PC enters an OE with customer ID of the Buying PC quoting their “Customer PO”.

Buying PC places PO. The vendor ID on the PO is the selling PC

Does Selling PC invoice match Buying PC PO within AP matching tolerances?

YES:

PO Costing complete. No further action by PC staff required.

NO:

AP Mismatch resolution process applies to resolve any discrepancies

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