Overview
As your business grows the large number of bills to be processed daily, can become a critical and complicated task. The impacts generated when they are incorrectly processed, or no one remembers to take care of them makes this activity a problem. Eventually this will cause late payments, incorrect payments, lost discounts, among other things.
Therefore, Bizagi offers the solution with the Accounts Payable process.
It will help to improve the process of receiving, verifying, and approving invoices, reducing processing time and avoiding misinformation. Accounts Payable supports you through the invoice reception, validation, and approval task, reducing process time and avoiding incorrect information.
This document will guide you through the construction of the Accounts Payable process:
It begins when an invoice is received. The received invoice is associated with the Purchase Order which generated it, and its Number, Due date, and the scanned Invoice file must be entered.
Part of the process is to avoid paying incorrect invoices. It is very important to review that the Invoice’s Products, Prices, Taxes, Dates, etc. match with the Supplier agreement.
In some cases, the applicant's approval is required, either because the applicant requested it from the Purchase Request or because the person who reviewed the Invoice requested it. If this happens, there will be an activity assigned to the Applicant.
Finally, the accounting entry is made through an interface in the company ERP.
Return Invoice to Supplier sub-process
Account Payable seeks to avoid paying incorrect invoices, if the Invoice has incorrect information or the products or services invoiced do not meet the requirements, the Invoice, and the Products (if necessary) must be returned to the Supplier.
Bizagi Modeler Process Description (Bpm)
The complete documentation of this process can be found within its Bizagi Modeler file (.bpm). From there, you can generate a Word document with all its information.
Data Model
For a better information flow the Business Process entity is Invoice; its main attributes are: Invoice Products, Total Cost, Taxes, Invoice Number, Purchase Order, Cost Center, Supplier information, Payment Options, Payment Terms, Due Date and Discount information.
Invoice has a relationship with the Purchase Order and Invoice Products entities.
An Invoice can hold many products, thus, there is a one-to-many relationship, or Collection, with Invoice Products.
An Invoice is directly related to one Purchase Order.
Parameter Tables
The process allows to gain access to frequently used information through the Parameter Tables. For example, the Supplier Information, Payment Options, Payment Terms, or Cost Center.
Each of the Parameter Tables contain useful information, for example the Supplier Entity holds all the information about the company's suppliers, the Address, Telephone Number, E-mail, Payment Options. All suppliers must be created in the Supplier entity to use them in the Process. If they are not, an Administrator user must create them.
Payment Options and Payment Terms include the different Company payment agreements.
Finally, the Cost Center includes all the company's Cost Centers.
Define Forms
Receive Invoice Form
The first task form includes a Join Search Dialog called Purchase Order, which enables the user to search for the received invoice by several search criteria, Order Number, Order Date, Supplier, Amount.
The search form contains four renders:
Only the unpaid Purchase Orders are shown.
Invoice Number, Due Date and Invoice File renders are required.
Validate Invoice Form
The Validate Invoice form includes four groups:
•Invoice Information: Record date, Invoice Number, Invoice Date, Payment Options, Cost Center, and discount information.
•Supplier information: Name, Id, Payment Options
•Invoice Products: Quantity, Unit Price, Total Price.
•Approval Information
The data can be entered in two ways. If the Invoice has been associated with a Purchase Order, the Invoice information is loaded automatically. If not, all the information is entered by the user.
The form includes two tabs. The first shows the Invoice information and the second the Purchase Order information. If the Invoice does not have a Purchase Order, the second tab is not visible.
A button is used to calculate the Total Cost and the Tax. The renders are editable for the necessary changes.
Approve Products and Services
The Approve Products/Services form includes all the invoice information as non-editable The Approval Invoice and Approval Comments are required.
Business Rules
Define Expressions
The process uses exclusive Gateways to indicate the process work flow.
The first Gateway checks if the Invoice can continue the process or if it’s necessary to return the Invoice to the supplier. If the Invoice data is correct the Invoice goes to the next Gateway.
The second Gateway validates if the products or services need the applicant's approval. If this occurs, the case will be assigned to the Purchase Request Applicant; otherwise, it should upgrade the company's ERP.
If the Invoice is not related to any Purchase Order, the Approval Products/Services activity is not available.
The last Gateway evaluates if the products must be returned to the supplier, if this is not necessary, the case ends.
Activity Actions
The process includes several business rules; the most important ones are:
Set Today as Date of Record, the rule is executed on enter in the Receive Invoice task.
If the Purchase Order Render is filled, the Purchase Order is related to the Invoice that generated it, and vice versa, also the Cost Center, Supplier and discount information is loaded automatically.
The rule only applies when the Invoice is associated with a Purchase Order.
The rule is executed on enter in the Validate Invoice task.
When the Purchase Order exists, the Quoted and Purchased Products must be included in the Invoice as Invoice Products.
If a discount is available, the Total Cost is calculated applying the Discount. If not, the Rule does not apply.
The last rule is executed on exit in Justify the Rejection. This rule set the Purchase Order as not Invoiced, because it is necessary that the Purchase Order is available for future searches.
In the Inform Supplier task, an E-mail is sent to the Supplier with the rejection justification of the Invoice
Performers
To define the Performers in the process, the Wizard is used. In the fifth step of the Wizard click on Define Performers
In the first activity, the assignees will be the person with Receptionist Role.
The Validate Invoice, Justification of the Rejection and Return Products tasks are performed by the person with Financial Assistant role.
The Approval Products/Services task is performed by the person who made the Purchase Request.
Integrate
The process includes one automatic task, Update Financial ERP. Updating is performed via an interface.
Last Updated 9/28/2022 11:17:30 AM