New P2P Process Backbone Procure to Pay Process
P2P Process Review Requirement Order Receipt Invoice Procure-to- Pay (P2P) is a component of BP’s Global Backbone program to implement a common process across Upstream. More specifically, P2P is: • A Single common “end to end” process across BP’s regions where materials and services are purchased using BP’s negotiated contracts • Uses electronic pricebooks for purchasing, invoicing and price validation • High spend/high transaction suppliers (POs and Invoices) can transact electronically with BP (Ariba Marketplace) New P2P Process 2
Contracts in Backbone Requirement Order Receipt Invoice Contracts Pricebook Backbone Operational Defined, created, Contract: and maintained by is the electronic PSCM. Contracts contain agreed version The transactional + = terms & conditions of the contract version of the negotiated between details general BP and a Supplier. (Contract trading terms of the After Contract (paper) pricing / rates) BP Master Agreement is signed, it must be AND The Pricebook made operational in Backbone Purchase Order • Written acceptance of an offer to buy goods or services. • Typically a binding contract with agreed terms and conditions. • A single order can have different PO line types • Can be receipted and invoiced against • Product/Service required, delivery date, price New P2P Process
Pricebooks Requirement Order Receipt Invoice Two types of Pricebooks Lines Detailed Line Commodity Line Includes detailed A service allowed under description, unit of contract but not measure, and price (can individually defined include commodity lines) Whether a Supplier has a detailed or commodity line pricebook is not dependent on the relationship status they have with BP. It is driven by operational needs. The decision is made on a contract by contract basis. New P2P Process 4
Pricebook Roles and Responsibilities Requirement Order Receipt Invoice Supplier is responsible for: • Supporting Pricebook Validation – Review Pricebook line detail to ensure accuracy against the Contract and work with BP PSCM to incorporate any changes identified • Keeping the Pricebook up to date – Work with BP PSCM to maintain the Pricebook on an on-going basis for new items, price changes, etc. BP Contract owner is responsible for: • Work with the line to establish the scope for the BP Pricebook • Work with supplier to maintain & update BP pricebook on an on-going basis • Review and approve BP pricebooks • Ensure contracts that are due to expire are extended, terminated or replaced New P2P Process
PO Line Types – Standard Vs. Limit Limit PO Lines Standard PO Lines ✓ Used to request one or many services where the ✓ Used to request material and services scope of work and spend is known, but exact detail where detail and scope are known of work is unknown ✓ Contains a detailed description of material ✓ Will include a scope of work and a value based on or service along with quantity, UOM and quotations or contract rate estimates unit price ✓ A limit line will have a “not to exceed“ total value ✓ Can be “stand alone” or reference a the sum of all invoices raised against this line contract CANNOT exceed the value specified ✓ Can be “stand alone” or reference a contract New P2P Process
Purchase Orders - NO PO, NO WORK! Requirement Order Receipt Invoice • Purchase Orders (PO) will be the only acceptable means to start the purchasing process and for initiating work, with the exception of a declared emergency • If a supplier is asked to begin work or deliver materials without a purchase order, the supplier should request a purchase order from their BP representative • DO NOT perform services beyond the scope or value of the PO • You must contact your BP PSCM representative before proceeding with any additional work or materials which are not within the original PO scope or value. A Change Order will be issued either in the form of an amended or new PO. New P2P Process 7
Material and Service Receipts Order Receipt Requirement Invoice • Delivery of materials must be documented by Bill of Lading (BOL) / Packing Slip, etc. as proof of delivery • Services performed must be acknowledged with a signed document (e.g. field ticket, timesheet, etc.) as proof of delivery • Approved work acknowledgement documentation MUST be signed by a BP Representative and MUST be submitted with the invoice for successful processing of payment • As part of the invoice processing the BP system will perform a 3 way match between the Invoice, PO and Receipt to ensure that the quantities and prices being billed are correct – If a match is made , the invoice is released for payment – If a match is not made the invoice will require remediation and may be rejected New P2P Process
Invoice Supporting Documentation Requirement Order Receipt Invoice Types of supporting documentation to be supplied as part of invoice submission are: • Signed field ticket • Signed delivery note by authorised BP personnel (for goods delivered) • Original timesheets/job tickets signed off by authorised BP personnel (for services delivered) • Approved milestone/payment certificate • Calibration/inspection certificate with shipment information 3 rd party invoices • • Job completion certificates • E-mail from BP staff New P2P Process 9
Invoice Requirements Requirement Order Receipt Invoice • Per the P2P process, an invoice begins to age from the date a valid and compliant invoice is received by the Accounts Payable Team (in line with the vendor’s invoice terms) and NOT by the vendor’s invoice date – The aging process for invoices resubmitted to the AP Team will restart from the date valid invoices are received in the AP Team • Invoices must only be submitted to BP after the supply of goods or commencement of work • Please only issue and send your invoices to BP after full delivery (or transfer of title) of the goods or services being invoiced. – Exception granted for progress payments or milestone billing that is specified in your contract with BP • Where services are provided over multiple months, invoice at the end of each month or when the work is completed (whichever is earlier) • Invoices submitted must reference a valid PO – A single BP PO Number per invoice (multipe invoices against a PO is acceptable) – A BP PO line item number reference per invoice line item New P2P Process 10
Invoice Submission & Payment – What’s Changing • BP will reject non-compliant invoices and request the supplier to resubmit a revised invoice • Payment of an invoice depends on the payment terms we have agreed to with you, the date when a valid invoice is received, and the accuracy and completeness of the invoice you submit • If your invoice is returned and you have questions, please contact the AP Help Desk or your BP contract owner to determine action required in order to successfully resubmit your invoice • If an invoice is rejected, the payment terms will not begin until a corrected invoice has been resubmitted and received by BP New P2P Process 11
Invoicing against a Limit PO line with Commodity Pricebook Item Description Total Price • Invoice line information source: 1 Description: Install pumping station 8,200,000.00 – PO: PO Line Number Account Assignment: WBS Z1-23456-E:ABCD Delivery Date: 03-MAR-2015 TO 03-MAR-2016 – Supplier: Part Number, 2 Description: Dispose of waste /debris at location site 500,000.00 Description, Quantity, UoM, Unit Account Assignment: APBZYXWVU1 Delivery Date: 03-MAR-2015 Price, calculated Amount per Total Purchase Order Amount (net discounts, excluding freight & special charges) GBP 8,700,000.00 agreed Unit Price on quote PO Line Part Number Description Qty. UoM Unit Price Amount Cost Object Number 1 TR50 50 Ton Boom Truck Rental Day 2 DAY 800.00 1600.00 Z1-23456-E:ABCD 1 KPG-WG Compressor WG 2 Rental Hour 6 HUR 35.00 210.00 Z1-23456-E:ABCD 1 KPG-IR Compressor IR 347 Rental Hour 40 HUR 55.00 2200.00 Z1-23456-E:ABCD 1 Travel Expenses 1 EA 678.34 678.34 Z1-23456-E:ABCD 2 TANK100 Disposal Container 1 EA 643.52 643.52 APBZYXWVU1 2 CREWLABOR Cleaner Crew Hour - Team Lead 24 HUR 25.00 600.00 APBZYXWVU1 2 Meals Per Diem 3 EA 35.00 105.00 APBZYXWVU1 Source: BP PO Supplier Supplier Supplier Supplier Supplier Supplier BP Representative New P2P Process
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