Backbone Procure to Pay Process P2P Process Review Requirement - - PowerPoint PPT Presentation

New P2P Process Backbone Procure to Pay Process

New P2P Process

P2P Process Review

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)

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Invoice Receipt Order Requirement

New P2P Process

Contracts in Backbone

Contracts

Defined, created, and maintained by

• PSCM. Contracts

contain agreed terms & conditions negotiated between BP and a Supplier. After Contract (paper) is signed, it must be 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

Backbone Operational Contract: The transactional version of the general trading terms of the BP Master Agreement AND The Pricebook

+

Pricebook is the electronic version

• f the contract

details (Contract pricing / rates)

=

Invoice Receipt Order Requirement

New P2P Process

Pricebooks

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

• perational needs. The decision is made on a contract by contract basis.

Two types of Pricebooks Lines

Detailed Line Includes detailed description, unit of measure, and price (can include commodity lines) Commodity Line A service allowed under contract but not individually defined

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Invoice Receipt Order Requirement

New P2P Process

Pricebook Roles and Responsibilities

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

Invoice Receipt Order Requirement

New P2P Process

PO Line Types – Standard Vs. Limit

Standard PO Lines Limit PO Lines

✓ Used to request material and services where detail and scope are known ✓ Contains a detailed description of material

• r service along with quantity, UOM and

unit price ✓ Can be “stand alone” or reference a contract ✓ Used to request one or many services where the scope of work and spend is known, but exact detail

• f work is unknown

✓ Will include a scope of work and a value based on quotations or contract rate estimates ✓ A limit line will have a “not to exceed“ total value the sum of all invoices raised against this line CANNOT exceed the value specified ✓ Can be “stand alone” or reference a contract

New P2P Process

Purchase Orders

• NO PO, NO WORK!

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• 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. Invoice Receipt Order Requirement

New P2P Process

Material and Service Receipts

• 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

Invoice Receipt Order Requirement

New P2P Process

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Invoice Supporting Documentation

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
• 3rd party invoices
• Job completion certificates
• E-mail from BP staff

Invoice Receipt Order Requirement

New P2P Process

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Invoice Requirements

• 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

Invoice Receipt Order Requirement

New P2P Process

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

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New P2P Process

Invoicing against a Limit PO line with Commodity Pricebook

• Invoice line information source:

– PO: PO Line Number – Supplier: Part Number, Description, Quantity, UoM, Unit Price, calculated Amount per agreed Unit Price on quote

Item Description Total Price 1 Description: Install pumping station 8,200,000.00 Account Assignment: WBS Z1-23456-E:ABCD Delivery Date: 03-MAR-2015 TO 03-MAR-2016 2 Description: Dispose of waste /debris at location site 500,000.00 Account Assignment: APBZYXWVU1 Delivery Date: 03-MAR-2015 Total Purchase Order Amount (net discounts, excluding freight & special charges) GBP 8,700,000.00

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 Amount Cost Object PO Line Number Part Number Qty. UoM Description Unit Price

New P2P Process

Item Description Quantity UOM Unit Price Total Price 1 Description: Maintenance of LNG supporting Equipment 60,000.00 Pricebook: 4420000999 Master Agreement# 4420000999 Delivery Date 10-JUL-2017 TO 10-JUL-2018 Gross Price 60,000.00 2 Description: Maintenance of other supporting Equipment 40,000.00 Pricebook: 4420000999 Master Agreement# 4420000999 Delivery Date 10-JUL-2017 TO 10-JUL-2018 Gross Price 40,000.00 Total Purchase Order Amount USD 100,000.00

Invoicing against a Limit Order with Detailed Pricebook

• Invoice line information source:

– PO: PO Line Number – Pricebook: Part Number, Description, UoM and Unit Price – Supplier: Quantity and calculated Amount per agreed Unit Price on Pricebook

1 TRBT50D 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 90000000 Travel Expenses 1 EA 678.34 678.34 Z1-23456-E:ABCD 2 ROLL20YD Disposal Container 1 EA 643.52 643.52 APBZYXWVU1 2 SERCL07H Cleaner Crew Hour - Team Lead 24 HUR 25.00 600.00 APBZYXWVU1 2 90000000 Meals Per Diem 3 EA 35.00 105.00 APBZYXWVU1 Source: BP PO BP PriceBk BP PriceBk Supplier BP PriceBk BP PriceBk Supplier BP Representative Amount Cost Object PO Line Number Part Number Description Qty. UoM Unit Price

PartNum UOM ShortDesc PriceUnit Contract Price EffectiveDa te ExpireDate QtyMin Class_Code Class_Version ComplexPric eExtension 90000000 EA Commodity, AGT TRVL EXPNS 1 0.00 20120101 20171231 1 20122801 UNSPSC Version 10_05_01 Service TRBT50D DAY 50 Ton Boom Truck Rental Day 1 800.00 20120101 20171231 1 20122801 UNSPSC Version 10_05_01 Service KPG-WG HUR Compressor WG 2 Rental Hour 1 35.00 20120101 20171231 1 20122801 UNSPSC Version 10_05_01 Service KPG-IR HUR Compressor IR 347 Rental Hour 1 55.00 20120101 20171231 1 20122801 UNSPSC Version 10_05_01 Service ROLL20YD EA Disposal Container 1 643.52 20120101 20171231 1 20122801 UNSPSC Version 10_05_01 Material SERCL07H HUR Cleaner Crew Hour - Team Lead 1 25.00 20120101 20171231 1 20122801 UNSPSC Version 10_05_01 Service

New P2P Process

Where To Get Help

• For general queries regarding our process, any issues/ escalations/ Ariba Light

support please contact the Supplier Enablement Team: Supplier.enablement@bp.com

• For invoice status and payment date-related queries please reference BP Accounts

Payable Invoice Requirements Document: AP Invoice Requirements

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New P2P Process

Invoice guidelines

• What not to do
• Do not submit an invoice without a valid BP PO number (Upstream) or BP Non PO invoice

reference known as a VID (IST).

• Do not submit a PO invoice which does not reference the BP PO line being invoiced or

which exceeds the remaining value or quantity of the PO line being invoiced. If the quantity

• f the materials or value of work you are being asked to deliver exceeds the remaining PO

quantity or value, please contact your BP business contact so that it can be increased appropriately and re-issued.

• Do not submit an invoice with unauthorized charges. The BP PO or BP Non PO invoice

reference pertains to a specific scope of work and should not be used for work that is

• utside of that agreed scope.
• Do not submit an invoice that does not meet the minimum invoice requirements.
• Do not submit an invoice or credit note which is not mathematically correct.
• Do not submit an invoice without appropriate supporting documentation.
• Do not hold onto credit notes (credits are to be issued to BP as soon as they are

recognized).

• Do not submit duplicate invoices or multiple copies of the same invoice.

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