Accounts Payable Construction Document
Accounts Payable | 2
Table of Contents
Table of Contents .................................................................................................................................2
Process Model .......................................................................................................................................3
RETURN INVOICE TO SUPPLIER SUB PROCESS. ..................................................................................... 4
Data Model .............................................................................................................................................5
PARAMETER TABLES ...............................................................................................................................6
Define Forms .......................................................................................................................................... 7
RECEIVE INVOICE FORM ......................................................................................................................... 7
VALIDATE INVOICE FORM ......................................................................................................................8
APPROVE PRODUCTS AND SERVICES .................................................................................................. 10
Business Rules ......................................................................................................................................11
DEFINE EXPRESSIONS ............................................................................................................................11
ACTIVITY ACTIONS ............................................................................................................................... 13
Performers ............................................................................................................................................ 17
Integrate ................................................................................................................................................ 18
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 3
Process Model
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, validate and approval task, reducing process time and
avoiding incorrect information.
This document will guide you through the construction of the Accounts Payable
process:
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 4
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.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 5
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.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 6
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
in order 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.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 7
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,
Orden Date, Supplier, Amount.
The search form contains four renders:
Only the unpaid Purchase Orders are shown.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 8
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.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 9
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.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 10
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.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 11
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.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 12
The last Gateway evaluates if the products have to be returned to the supplier, if this is
not necessary, the case ends.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 13
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.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 14
When the Purchase Order exists, the Quoted and Purchased Products have to 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.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 15
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.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 16
In the Inform Supplier task, an E-mail is sent to the Supplier with the rejection
justification of the Invoice
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 17
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 assignee will be the person with Receptionist Role.
Copyright © 2016 | Bizagi Confidential
Accounts Payable | 18
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.