There are two distinct workflows available in WMS around the functions encompassed by the Payments Module:
Purchasing Approval Workflow
Payments Approval Workflow
These two workflows are not compatible with each other (i.e. you must choose to use one or the other for each Division). There are very specific steps which need to be followed before clients can successfully switch from one workflow to the other. Builder MT strongly advises that all clients contact BuilderMT for support and consultation before making any changes to the Approval workflow settings.
The following comparison of features and use case scenarios is intended to assist clients in selecting the Approval Workflow best suited to their needs.
Features
The original Approval workflow using the Approve Payment of Purchase Orders menu item
Workflow focus is the purchase order (not the supplier invoice)
Supplier invoices are automatically generated on completion and approval of a selected purchase order
Purchase orders are displayed by Job or Supplier
Purchase orders are marked as Complete by locating the purchase order and checking the Completed box
Purchase orders are marked as Approved by locating the purchase order and checking the Approve Remaining box
Purchase orders may be part paid by editing the approved amounts either at the purchase order level of the purchase order item level
Completion of a linked scheduling activity automatically marks purchase order as complete
If Auto Approve Completed POs is checked, the purchase order is marked as Approved when the Completed box is checked and an invoice is automatically generated for the amount of the purchase order remaining to be paid
Invoice number is automatically generated from the purchase order number
Manual editing of invoice number is required if supplier's invoice number is not the same as purchase order number
Only one invoice/payment can be in the system for a purchase order at any one time. i.e. part payments of purchase orders must be processed in separate Send to Accounting sessions
To be Determined (TBD) purchase orders are not available for completion or approval
Suppliers on TBD purchase orders must be changed in the Send to Accounting or Issue PO screens
Fully paid/approved purchase orders are not available in the Approve Payment of Purchase Orders screen if credit is necessary
Invoice amount cannot exceed purchase order amount. Variances from the purchase order amount require either issuing a new purchase order for the variance amount or cancelling the original purchase order and reissuing a new purchase order for the total amount, including the variance
An invoice cannot be entered into the system if the purchase order task is not complete
An invoice cannot be entered into the system if the purchase order is on approval hold
Use Cases
where the client wishes to automatically generate supplier invoices from the completion of linked scheduling activities or purchase orders
where the majority of suppliers are using the WMS purchase order number as their invoice number (i.e. agree to not send invoice to builder).
where invoice amounts are never allowed to be different from purchase order amounts
minimal AP staff involved in payments workflow (i.e. minimal 'Invoice Entry' requirements)
Features
New workflow introduced in 4.7.4 as a result of enhancement requests from Australian clients
Workflow focus is the supplier invoice and supplier statement
Supplier invoices are entered into batches and matched against purchase orders
Two invoice entry modes:
Supplier/Invoice - enter invoice information and amounts, then select matching purchase orders
Purchase Order - enter the purchase order number directly against the invoice and pre-fill invoice information and amounts from purchase order, including invoice number
Purchase orders are displayed for selection by Supplier, Area or Job, with filters to include To be Determined (TBD) and approved purchase orders
Purchase orders are marked as complete by setting the Task Complete on either the matched purchase order or the invoice, or by locating the purchase order in Purchase Order Manager and setting theTask Complete
Purchase order amounts matched to invoices are marked as Approved by setting the Amount Approved on the invoice
Purchase orders may be part paid by editing the payment amounts either at the PO level of the PO Item level
Completion of a linked scheduling activity automatically marks purchase order as Task Complete, with no requirement for PO to be associated with an invoice
If Auto Approve Completed POs is checked, any completed purchase order which is matched to an invoice is marked as Amount Approved. If all purchase orders matched to an invoice are Amount Approved, then the invoice is also automatically marked as Amount Approved. If the invoice is marked as Task Complete and Amount Approved, and there are no variance amount or the variance amount is coded and approved, the invoice will automatically move to the Approved stage
Invoice Number is automatically generated from the PO Number in Purchase Order entry mode, otherwise the invoice number is entered or over-ridden manually
Multiple invoices/payments can be in the system for a purchase order at any one time (i.e. part payments of purchase orders can be staged for future payment and put on hold as required)
To be Determined (TBD) purchase orders can be switched to the selected supplier by matching the TBD purchase orders to a non TBD supplier's invoice or by changing the supplier in the Purchase Order Manager screen
Fully paid/approved purchase orders are available for entering credits when necessary
Invoice amount may exceed issued purchase order amount. Variance lines may be entered against existing purchase order line items. Variance line items must be coded and approved separately and a PO Change Order is generated for each variance
Invoice may be entered into the system prior to the purchase order task being marked complete
Invoices entered into the system may be placed on payment hold, with notes explaining hold reason
Credits can be requested on invoices entered into the system, and these are placed on hold until the issue is resolved by either entering a credit invoice or cancelling the credit request
Use Cases
where the client wishes to manage and reconcile supplier invoices and statements within the WMS workflow
where the majority of suppliers are submitting invoices for payment, with their own invoice number, either for statutory or business reasons
where invoices are routed to superintendents and estimators for approval and there is a requirement to manage this within the WMS workflow (rather than routing paper invoices)
where AP staff play a key role in payments workflow (i.e. client has 'Invoice Entry' requirements)
where a WMS workflow is required to handle cases where invoice amounts are different from purchase order amounts
where a WMS workflow is required to handle cases where credit requests need to be made on invoices (i.e. manage and track this process)
where a WMS workflow is required to handle cases where invoice and or POs need to be put on hold (i.e. manage and track this process)