Procure to Pay Transformation (P2P) Project – FAQs
What is the Procure to Pay Transformation project?
The Procure to Pay (P2P) project is a change of policies and procedures relating to how Aurora caregivers procure and pay for goods and services on behalf of Aurora Health Care. The following are the primary objectives:
Created a “Payment Matrix” document to define the appropriate method of purchasing/payment for each type of expense within the organization to eliminate confusion around how to pay for goods and services
Reengineered processes for 9 different purchasing and payment methods to be more efficient and include additional internal controls to reduce the risk of fraud. All processes and associated policies have been documented to provide clear instruction to all caregivers (Policy list below).
Redefined the levels of approval needed based on the transaction dollar amount to drive consistency across the organization
What are some of the key changes within the Procure to Pay project?
Nine core Aurora Policies have been created or updated:
Procure to Pay Policy – Is the policy that governs all other P2P policies, it also contains the Payment Matrix with governs how a caregiver should procure/pay for a good or service (ex. PO, check request, procurement card, etc.)
Purchase Order Policy – Defines when and how a PO should be utilized
Vendor Vetting Policy – Defines how a vendor should be vetted before purchasing occurs
New Item Approval Policy – Defines the steps for requesting a new item to be added to our purchasing system (MMIS/IREQ)
Procurement Card Policy – Defines the steps for obtaining a card and when it can be used
Check Request Policy – Defines when and how a check request should be utilized
Face Approved Invoice Policy – Defines when and how a face approved invoice should be utilized
Delegation of Financial Approval Authority – Defines the dollars limits each caregiver can approve to be spend on behalf of Aurora Health Care
Delegation of Signature Authority and Contract Policy – Defines when a contract is needed with a vendor before purchasing a good or service can occur. It also defines who within Aurora Health Care can sign a contract
Three significant system enhancements:
Draw Down PO functionality – These are purchase orders intended for use when a vendor is providing a service. They will be replacing current service PO’s commonly referred to as standing, blanket, equipment maintenance, service, support purchase orders. Draw Down will be requested through an automated request form within MMIS/IREQ.
Special PO functionality - This is a PO that can bypass the New Item Request process (New Item Approval Policy). These items must be non-medical items that are ordered
less than one time per month. They must be requisitioned through the special process within MMIS/IREQ and be receivable goods.
Approval Workflow updates – Both Onbase (AP invoice approval system) and MMIS/IREQ (Supply Chain requisitioning system) will be updating their invoice and requisition dollar approval thresholds to match the Delegation of Financial Approval Authority Policy. This will impact when invoices or requisitions are routed to leaders for approval.
All funds for goods and services must be pre-approved through the appropriate channel before those goods and services are provided to Aurora Health Care. See the Payment Matrix within the Procure to Pay policy for specifics on the appropriate method to procure and pay.
Purchasing will no longer cut a manual Purchase order; instead all PO’s must be requisitioned through MMIS/IREQ to be approved before the transactions occur.
Accounts Payable will no longer issue payment to a vendor without the funds being approved through the appropriate channel as defined by the Payment Matrix within the Procure to Pay policy (ex. PO, check request, face-approved invoice, etc.).
Why is Procure to Pay Transformation important/needed?
With the future of health care continuing to be unpredictable, Aurora needs to establish, implement, and consistently monitor operational processes that ensure we are not only providing the very best care to patients, but doing so in the most efficient way possible. As a result of past process improvement observations, system evaluations, and internal audit control findings it was identified that the Procure to Pay business processes were in need of reengineering. In addition this project will reduce the risk of fraud and abuse within the organization.
Who does Procure to Pay Transformation affect?
This project affects every caregiver within the organization that is responsible for budgeting and/or requisitioning goods and services.
How will Procure to Pay Transformation help Aurora, patients, and caregivers?
The Procure to Pay Transformation will help Supply Chain and Finance improve internal and external customer service to provide the right products are in the right place and the right times. Caregivers will have increased visibility to becoming better fiscal stewards which will increase critical performance measures. With all caregivers following the transformed processes Aurora will be able to ensure timely payment is received by our vendor community.
Who can I reach out to with questions?
When will this project take place?
Go live of this project will begin June 5th, 2017.
Will all policies and procedures be enforced beginning June 5th?
Yes, however there will be a 3 month grace period to allow for training to be done with our caregivers before system access is suspended. Beginning September 5th Supply Chain and Finance leadership will be holding all caregivers accountable to the updated business rules.
Will there be training?
Yes, training will occur within Aurora Learning Connection. For any existing caregivers that are budget authorities or requisitioners these modules will be assigned to you. This list will be shared with all leaders and it will be your responsibility to request training for additional caregivers. To supplement these Learning Connection modules, step-by-step quick reference guide will be provided to walk caregivers through key system procedures/functions, located on the home pages of System Logistics and Accounts Payable.
In addition, between June and September Supply Chain and Finance will be hosting job labs at your facility or a facility close to your location to answer individual questions and help setup new Purchase Orders where appropriate. See the AP Resources page or System Logistics page for training times.
Will training be required?
Yes. To ensure caregivers properly understand Aurora Health Care’s procurement and payment policies while allowing for effective procurement of goods and services training is required. For those individuals that do not successfully complete training their system access will be suspended.
Notifications will go out to those leaders with caregivers that have not completed the training.
Who made these policy decisions?
This project utilized a cross functional approach to ensure it obtained feedback from multiple stakeholders on key process, policy, communication and training changes. More specifically, these groups included:
Project Leadership Team –key business owners from Finance, Supply Chain, Pharmacy, Facilities, IT, Food and Nutrition Services, Aurora at Home
Subject Matter Experts –key stakeholders from Food and Nutrition Services, Supply Chain, Finance, Construction Management, Digital Planning, Communication
Senior Advisory Board - key stakeholders from Nursing, Hospital Operations, Clinical Operations, Legal, Internal Audit, Facilities, Pharmacy, Aurora at Home, Hospital Finance
Customer Advisory Board –key stakeholders from Surgical Services, Nursing, Cardiac Services, Imaging, Clinic Leadership, IT, and Aurora at Home
All final changes were approved by Aurora’s leadership Team.
What will happen if I choose not to follow the new process?
There are plenty of consequences, which are detrimental to the functioning of Aurora’s day to day business, if a caregiver chooses not to follow the new policies and procedures. These can include but are not limited to:
Vendor Credit Holds
System access removal for repeat offenders
Vendor Service Disruption
Caregiver Performance Improvement Plans
Delayed shipment of products
What is your role in the Procure to Pay Project?
One of the main objectives of the Procure to Pay Project is to ensure our caregivers have what they need to do their job effectively. With that in mind we ask that everyone complete their Learning Connection modules, attend your on-site job labs, ensure you ask questions and provide feedback for clarity.
In addition all current maintenance, service, and blanket POs will need to be updated to a new Draw Down PO by September 5th, 2017.
What happens if the GL is not available when requesting a Draw Down or Special?
The system team has reviewed which GL categories are appropriate to request on a Draw Down or Special. Understanding there might be mistakes, please email ireq.administration@aurora.org if there is a GL you feel should be added. This team will review to ensure appropriateness and add to the drop down list.
Note: if you receive the pop up notice that the org/area/expense account combination is not valid for your department, please reachout to your local finance team so they can review and determine if the org/area/gl combination is appropriate and activate as necessary. Once they activate the org/area/gl string please wait one business day to requisition your draw down or special.
Can I have my dollar threshold increased?
Dollar thresholds have been established in conjunction with finance, audit, supply chain and other executive leadership teams. At this time special dispensation will not be granted to different departments or individuals.
Why do I have access to multiple orgs and areas in IREQ?
Access to orgs/areas should be requested in IREQ, the Quick Reference Guide posted on System Logistics and AP hompages titled “Request IREQ Access-Org Area Application” gives instructions on how to complete this request. The org/area’s BA must approve access to a caregiver before it is granted.
If you have not completed a request and are a leader that has a caregiver with org/area access then you were automatically granted that org/area. The reason this was granted is to ensure you could approve orders for that caregiver.
What is the difference between an IREQ, Draw Down, and Special Order?
Ireq - is an acronym for Intranet Requisitioning. It is the web-based application caregivers use to requisition all non-pharmacy supplies and minor equipment. Ireq has an item master with preferred contracted supplies that caregivers should utilize before seeking out alternative options
Draw Down – Is a type of requisition application found within the Ireq application. It creates a purchase order intended for use when a supplier is expected to provide a service over a specified period of time. Draw Down POs replace Blanket, Service and Maintenance PO’s which will all be canceled in the system 9/5/2017.
Special - Is a type of requisition application found within the Ireq application. It creates a Purchase order intended for use when a non-medical supply does not exist in the Ireq item master and does not exceed $5,000.
All of these PO requisition types have to follow the approval thresholds before they are issued.
Where can I find the reference guides?
Caregiver Connect > Accounts Payable Resources > Quick Reference Guides (two options: Accounts Payable or System Logistics)
These sites will always have the most up to date versions of the Quick Reference Guides.
How does the new approval process work?
Currently, the IREQ system is setup to default to the requestor’s manager for the next level of approval. The hierarchy for approvals is NOT org/area number or org/area Budget Authority. So, if you are requisitioning for another department, the requisition will still go to the REQUISITIONER’S manager and not the department’s manager the requisitioner is ordering on behalf of. If you want/need the manager of the cost center to approve the PO, then someone in that cost center needs to input the requisition.
Remember, whoever is listed as the requisitoner on the PO will be responsible for APPROVING the invoice for Draw Down PO’s.
How do I know what GL account to use?
For items ordered through IREQ’s item master GL’s are already pre-populated for each item as cannot be changed. For Draw Down, Special, Check Requests and P-Card requesters should work with their managers to determine what GL accounts expenses are budgeted under. Additionally, users can look at their purchase history to provide guidance on accounts.
Does the Staples site still work?
Yes. The only change made to Staples is implementing the approval thresholds. So all caregivers will have the $500 threshold before their one up must approve a transaction.
Are there any changes to ordering on the hand-held devices?
The hand-held devices are not affected by this change.
Why does the Draw Down function only allow me to add one line to the request?
The Draw Down PO process does not allow for multiple cost centers to be charged. It’s a one-to-one relationship: One Cost Center to One Purchase Order. Keep in mind, each PO will have an invoice applied against it by Accounts Payable, which will then need to be approved in OnBase by whomever requisitioned the original PO.
I am a requestor for multiple cost centers. Does my immediate manager also have to have access to those cost centers so that the PO is sent to her for approval?
Yes. If your manager does not have access to the org/area that you are using, the requisition will not be routed for approval. They can request access using the Quick Reference Guide titled “Request IREQ Access: Org/Area Application” and follow the steps. Once the org/area is granted the manager will not receive an email to approve a individual requisition. However, they can follow the Quick Reference Guide titled “Approve an IREQ Shopping Cart” or “Approve a Draw Down Special Request” to approve that individual request.
Will old Blanket, Service, Maintenance PO’s automatically be converted to Draw Down PO’s?
No, all budget authorities (BA) were sent a list of existing Blanket, Service and Maintenance POs to use as a guide to requisition their new Draw Down POs for their org/areas. Remember, draw down POs can be requisitioned by the manager (BA) or their designee. However, it is important to keep in mind that whoever requisitions the PO will be accountable for approving every invoice that is applied against it.
How many cost centers can I have on my PO?
Draw Down and Special PO’s are quite simple: One cost center for the PO. If there were some PO’s in the past that contained multiple org/area/gl combinations, then the preferred method is to create separate PO’s --- one cost center per PO. However, it may be desirable to create just 1 PO with 1 cost center and then allocate the expenses via a journal entry to the appropriate cost centers. Finance is
doing this for some expenses item/services, not all. So before you create any PO’s that need to be allocated to different cost centers, please check with your local finance team for appropriateness.
I know there’s a contract with my vendor for the Draw Down I’m requesting, but I don’t have the contract number. Do I have to get the contract number?
No, the objective of this question was to ensure caregivers were aware that they have to have a contract before they do business with a vendor. If you have worked with the System Office to obtain a contract and don’t have the number input NA and move on. If you are not sure or don’t have a contract, contact System Logistics and they can assist.
Supply Chain will be auditing this data to ensure vendors have contracts, so please make sure there is a contract with a vendor before you do business with them.
What should I do if I can’t find the vendor name in the system?
Please email vendor.vetting@aurora.org and they can assist you. If they vendor is not a vendor we have done business this same team can help you with the vetting and vendor setup process.
After I received confirmation that the Draw Down PO is approved and I get a PO number, what do I do?
Using the information provided to you in the PO email notice please:
Contact the vendor, preferably by phone to let them know the PO number to bill all future invoices on for your location. This will not be sent to the vendor automatically.
Let the vendor know that if the PO is not clearly noted on the invoice the invoice will not be paid.
For vendors that come in for adhoc services it is always good to re-remind them of the PO they should bill on to ensure timely payment.
What if the vendor is requesting a hard copy of the Draw Down PO?
Through experience, Purchasing has found that for the vendor this is a nice to have versus a requirement. So encouraging the vendor to take the verbal PO should always be the first step. If the vendor is persistent then contact your Buyer group and they can assist.
Why was I assigned a P2P E-Learning Module?
There are three P2P Learning Connection modules that were assigned to the following individuals:
P2P Policy and Procedure Overview – Assigned to leaders with direct reports and caregivers with IREQ access. This gives a general overview of the new policies and procedures related to P2P that all caregivers requisitioning and all leaders that have the potential to approve an expense need to understand.
P2P Approver Overview Training - Assigned to leaders with direct reports. This gives specific instruction on how leaders with direct reports can approve a requisition or check request.
P2P Requisitioner Overview Training – Assigned to any caregiver with IREQ access. This gives more specific guidance on the tools caregivers have at their disposal to procure and pay for goods and where they can go to get assistance.
If you are not a leader or IREQ user and want to un-enroll from the modules please file an SMS service ticket.
Why am I receiving a Violation email notice?
Violation emails will go out to users from Accounts Payable if they violate the Payment Matrix methods. This typically occurs when AP receives an invoice without a purchase order. The notice is intended to notify users of the issue, give guidance on how to correct the problem, and direct them to resources.
Between 6/5 and 9/5 there is a grace period for compliance. After that violations will be escalated to caregivers leaders and system access can be removed. If caregivers address the violations now and follow the payment matrix violations should cease.
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