CS114 Umoja Services to Public and Staff Overview v15 RFP

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Umoja Services to Public & Staff Overview – Version 15

Last Modified: 06-June-13

CS114 – Umoja Services to Public & Staff Overview

Copyright © United Nations

Agenda

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Course Introduction

Module 1: Introduction to Services to Public & Staff

Module 2: Services to Public & Staff Master Data

Module 3: Billing of UN Common Services

Module 4: Sale or Donation of Inventory and Assets

Module 5: Third Party Procurement

Course Summary

Course Assessment

Course Survey



Course Overview

The purpose of the Umoja Services to Public & Staff Overview course is to explain the concept of Service to Public and Staff in the context of the activities of the UN Secretariat and to illustrate how Umoja will handle the processes of billing for UN common services, sale or donation of UN inventory and asset and carry out procurement on behalf of third party.

Prerequisite Review

You should have completed the following prerequisite course:

• Umoja Overview

• Umoja Master Data & Coding Block Overview

Course Duration: 2 hours

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Course Objectives

After completing this course, you will be able to:

• Identify the important changes and benefits of Umoja for UN Services to Public and Staff

• Describe the key roles and responsibilities in Services to Public and Staff

• Identify the different types of master data relevant for Services to Public and Staff

• Explain Billing of UN Common Services, Sale or Donation of Inventory and Assets, and Third Party Procurement and identify the process steps for each activity

4 Copyright © United Nations


Agenda


Course Introduction






Course Summary

Course Assessment

Course Survey


Module 1 Objectives

After completing this module, you will be able to:

• Explain UN Services to Public & Staff

• Describe the roles and responsibilities in Services to Public & Staff

• Explain the current challenges and change impacts

• Explain how Services to Public & Staff interacts with functions both inside and outside of Central Support Services



UN Services to Public & Staff

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UN Services to Public & Staff utilises the Sales and Distribution (SD) module within Umoja to manage the processes and reporting of the following activities:

• United Nations Postal Administration

• Guided tours, lectures and briefings, seminars and special events

• Sales of UN publications

• Sales of statistical, reports and demographic-related products

• Sales of Gift Items

• Garage Operations

• Newsstands

• Food Services and Catering Operations

• Accommodation and Lodging

• Other self-sustaining commercial activities


UN Services to Public & Staff

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Umoja SD module is also being used in other UN activities such as:

• Billing or seeking cost reimbursement for services provided to parties external to Umoja (such as specialized UN Agencies, Member States, NGOs, etc.).

• Services include:

– Conference, media, television, broadcast, special events and security related services

– Occasional rental or use of UN spaces*

– Ad-hoc facility, engineering and maintenance related services*

– Travel, visa, Laissez Passer (LP), freight, mail and insurance

– Aviation, transport and movement control related services

– Medical, personnel, training, legal, contractual and document related service

– Technology, information and communicating related services, etc.

• Sales or donation of UN inventory, equipment and assets

• Third party procurement

• Managing Advanced Payment Requests to agencies and other entities external to Umoja

Note: Regular lease-in income & facility related charges are managed in the Flexible Real Estate Module


Roles & Responsibilities

The following Umoja Enterprise roles are involved in the Services to Public & Staff process:

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Sales Distribution User

• Creates billing requests and credit/debit memo requests for issuing to parties external to Umoja

• Creates quotations, standard orders and return orders for all type of sales including third party procurement

• Queues requests, quotations and orders for approval from the Sales Distribution Approver

Sales Distribution Approver

• Approves or rejects billing requests, credit/debit memo requests quotations, standard orders and return orders

Sales Distribution Master Data Maintainer

• Creates and maintains standard rates/prices and pricing conditions for products of services provided by the UN, using a standard price book


Challenges within Services to Public & Staff

Lack of pricing/rate standardization and visibility across departments.

Difficult to monitor the status of the payments received and posting of revenues.

Reporting for revenue generating activities are challenging, data is spread across a number of documents, legacy system and databases that do not communicate with each other.

Lack of integration - multiple invoices are generated in connection with the same function/event with consequent duplication of efforts and time (for example venue, security, cleaning, interpreting services).

Lack of process automation - Processes are manual, complex, require multiple data entry points and time consuming.

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Currently, there is no integrated process for the activities related to Services to Public & Staff. The challenges within Services to Public & Staff include:


Major Benefits

The benefits of the Umoja Implementation to Services to Public & Staff include:

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Prices/rates can be standardized, set and enforced globally.

All payments to the UN will be recorded against relevant revenue accounts, making it easier to track incoming revenue. For those that are considered as true cost recovery they will be posted to spendable-revenue accounts and re-allotted back to the budget owners.

Support the UN’s adoption of IPSAS, enabling accurate and compliant reporting on revenue generating activities.

Work integration and streamlining - Instead of multiple invoices, a consolidated invoice can be issued to a customer for various services and/or for the same function/event.

Improved budget control - A procurement activity on behalf of third party will be carried out matching an Account Payable (AP) of a Vendor with an Account Receivable (AR) of a Customer without effect on the budget of the office who offers the service.


Touch Points

The Umoja system is an integrated system and most of its modules integrate with each other to complete a process. Touch points refer to these integration points across Umoja modules, processes and activities.

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Business Intelligence

(BI)

Supplier Relationship Management

(SRM)

Sales and Distribution

Master Data

Financial Accounting

Data on clients and pricing condition are derived automatically from Master Data

Standard Orders for 3rd Party Procurement automatically generates purchase requisition, which is then transferred to SRM

Invoice for provision of UN Common Services or sale of assets and inventory are automatically transferred to FI for billing

Extensive report are consolidated in the BI module

Work/ Service Orders

Management

Note: The greyed out touch points are not in scope for Pilot, Cluster 1 and Cluster 2.

Material Management

Project Systems

Warehouse Management


Learning Checkpoint 1

Which of the following are the benefits of the Umoja Solution for Services to Public & Staff?

Select all that apply.

A. Adoption of IPSAS

B. Record revenue and re-allocation of true costs

C. Maintenance of localized processes

D. Automation

E. Processes split between multiple systems

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Which of the following are the benefits of the Umoja Solution for Services to Public & Staff?


A. Adoption of IPSAS

B. Record revenue and re-allocation of true costs

C. Maintenance of localized processes

D. Automation

E. Processes split between multiple systems

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Option A, B and D are the correct answers. Adoption of IPSAS, increased transparency and automation are benefits of the Umoja Solution for Services to Public & Staff.



What is the Sales Distribution User responsible for?


A. Creating quotation

B. Approving rates/prices and pricing conditions

C. Creating standard and return orders

D. Maintaining Master Data

E. Approving standard orders

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What is the Sales Distribution User responsible for?


A. Creating quotations

B. Approving rates/prices and pricing conditions

C. Creating standard and return orders

D. Maintaining Master Data

E. Approving standard orders

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Option A and C are the correct answers. The Sales Distribution User is responsible for creating quotations, standard orders and return orders for all type of sales including third party procurement.


Module 1 Summary

The key points covered in this module are listed below:

• Sales Distribution User is responsible for creating quotations, standard orders and return orders for all type of sales including third party procurement

• Sales Distribution Approver is responsible for approving or rejecting quotations, standard orders, return orders, billing requests, and credit/debit memo requests to parties external to Umoja

• Sales Distribution Master Data Maintainer is responsible for creating and maintaining standard rates/prices and pricing conditions for products and services provided by the UN

• Services to Public & Staff utilizes Umoja Sales & Distribution module to manage multiple revenue generating activities

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Agenda


Course Introduction






Course Summary

Course Assessment

Course Survey


Module 2 Objectives


• Identify master data elements used within the Services to Public and Staff process

• Understand the role of Business Partner within the Services to Public and Staff process

• Explain the concept of Division, Sales Organization and Distribution Channel their use when executing transactions in the SD module



Key Term Description

Business Partner Business Partners are any entity (person or organization) that has a business relationship with the UN

Pricing Conditions The determination of a price calculated on a set of variables that apply when the price is calculated.

Cost Center A cost object that represents a unit of the organization that collects costs and revenues of on-going operations or functions

Distribution Channel The distribution channel determines how materials or services are sold and how they are distributed to customers, for example, retail, wholesale, self-collection

Division

The division is an organizational unit, which establishes responsibility for profits from materials and services. Division can be used to organize materials or services, for example to form product groups or lines.

Plant

A location where materials are produced, purchased, stored, inventoried, shipped, received and valuated, or from which services are provided (Mission/Support Center in Peacekeeping, Country for HQ and OAHs)

Key Terminology

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Master Data: Overview

Master Data is fundamental business data that is common and applicable across multiple business functions, applications and transactions.

Master Data ensures:

• Full integration of Umoja, enabling the system to run transactions seamlessly across modules

• Minimum number of data entries in Umoja

• Derivation of data across all Umoja modules

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Master Data Umoja

Sales & Distribution

Master Data elements used for updating transactional postings in SD


Services to Public and Staff Master Data

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Customer Master Data

Material Master Data

Currently customers, materials and pricing data are maintained locally with limited use of standardized rates/prices.

In Umoja the following Master Data are shared among modules, offices and locations. Master Data will be utilized to meet the goals of an integrated Services to Public & Staff process and will be shared globally across the Organization.

Master Data will enable rates/prices and terms & conditions to be standardized and apply across multiple offices and departments.

Pricing Master Data


Customer Master Data - Business Partners (BP)

In the Umoja solution, all customers involved in Services to Public & Staff will be referred to as Business Partners.

Business Partners are any entity (person or organization) that has a business relationship with the UN. They can be a UN Agency, Government entity, non-profit organization, commercial vendor, individual, etc. that are involved with the UN.

A Business Partner can be assigned different “roles”. A BP can be at the same time a Vendor, a Customer, a Landlord or a Tenant so that the same BP is shared among modules (FI, SRM, SD and RE). In Sales and Distribution all Business Partners must have UN Customer role.

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BP record contains General Data utilized by all processes. BP Role Data is module-specific, and in this case UN Customer data for Service to Public & Staff process.

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Customer Master Data – Business Partner (BP)

BP

Ro

le

Sales Area Data Relevant for Sales Valid for Sales Organization, Distribution Channel & Division

Business Partner Master

General Data Relevant for all modules, and valid for all Organizational Units

General Data

UN Vendor

UN Customer

UN Landlord

UN Financial Service

Company Code Data Relevant for Accounting Valid for Company Code



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Material Master data contains all the information on the goods and services that the UN procures, produces, stores, distributes and sells.

Examples for various items are given below: • IT equipment • Facilities Services • Aviation Services • Fuel Supply • Vehicles

Items on the Material Master are shared among modules: An excavator can be purchased, sold, maintained, transfer and utilized in construction.


Umoja Realization – Services to Public

and Staff

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The Master Data record contains Basic Data utilized by all processes and module-specific data, in this case Sales specific data for Service to Public & Staff.


Bu

sin

ess

Are

as

Material Master

Basic Data

Purchasing Costing Sales Accounting Basic Data Relevant for all areas Valid for all Organizational Units

Purchasing Relevant for Materials Management Valid for Plant

Further … Relevant for construction, requirements planning, accounting, and so on

Sales: Sales Org. Relevant for Sales Valid for Sales Organization Distribution Channel Sales: General/Plant Relevant for Sales Valid for Delivering Plant


Pricing Master Data

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Pricing Condition is a term used to describe the determination of a price calculated on a set of variables that apply at the time when the price is calculated.

Examples are listed below: • UNDP requests local transportation services in connection with the annual Global

Forum: the variable factors - the customer (UNDP) • The product (Local Transportation Services) • The order quantity (5 days) • The date (work hours/after work hours) • Any other applicable charges (14 % administrative costs ) - determine the final price

the customer gets

The information about each of these variables are stored in the system as Master Data in the form of Pricing Conditions.


SD Specific Processes

Shared Processes

General Master Data

SD Specific Master Data

Critical Data in SD Processes

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Material Master (Services)

Business Partner (Customers)

Quotation

Delivery Document

Post Good Issue

Invoice

Standard Order

Financial Document

Pricing Conditions

Sales Contract

Return Order

Credit/Debit Memo

Credit/Debit Memo Request

Delivery Document

Material Master (Goods)

Good Receipt

This diagram summarizes the types of data utilized in the different SD processes.

Reference Data Currencies, Country Codes, Commodity

Codes, etc.

Not in Scope for Pilot


1000

UN

00 General Services &

Others

05 Properties & Equipment

07 Conf, Media & Events

08 Facility & Engineering

09 Travel & Transportation

04

Direct Sales

07

Billing/Cost Recovery

Structure in SD Module Users, Customers, Materials/Services and Pricing Conditions in SD module are structured/categorized based on Sales Areas, which consists of Sales Organization, Distribution Channels and Divisions.

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10 Aviation & MovCon

11 Personnel & Training

12 Inventories & Supplies

13 Legal, Contract & Document

14 ICT Services

Sales Organization

Distribution Channel

Division


SD Users and Approvers will need to enter the Sales Organization, Distribution Channel and Division when executing transactions in the SD module. • The Sales Organization is the overarching sales body, in this case the UN • The Distribution Channel determines how materials or services are sold and how

they are distributed to customers, in Umoja this includes Direct Sales and Billing/Cost recovery

• The Division is an organizational unit, which establishes responsibility for profits from cost recovery or materials and services. Division can be used to describe where materials and services are provided

Structure in SD Module

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By specifying Distribution Channel and Division, SD approvers will be able to limit their views in Umoja so they only see materials and services in connection with their area of responsibility. UN offices providing the same or similar services will utilize the same Distribution Channels and Divisions, thus sharing and using the same Master Data such as Customers, Materials/Services and Pricing Conditions. Location or site specific information and security authorization are maintained at Plant level.

Structure in SD Module

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Who is a Business Partner in Umoja?

Select the correct option.

A. Only Vendors

B. Only Member States

C. Only Individuals

D. Only Customers

E. All customers (individuals or organizations)

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Who is a Business Partner in Umoja?


A. Only Vendors

B. Only Member States

C. Only Individuals

D. Only Customers

E. All customers (individuals or organizations)

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Option E is the correct answer. Business Partners are ANY entities that have business relationships with the organization.



The determination of a price calculated on a set of variables that apply when the price is calculated is called:


A. Pricing Conditions

B. Service Record

C. Cost Center

D. Distribution Channels

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The determination of a price calculated on a set of variables that apply when the price is calculated is called:


A. Pricing Conditions

B. Service Record

C. Cost Center

D. Distribution Channels

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Options A is the correct answer. Pricing Conditions is the determination of a price calculated on a set of variables that apply when the price is calculated.


Module 2 Summary


• Master Data is fundamental business data that is common and applicable across multiple business functions, applications and transactions

• A Business Partner is any entity (person or organization) that has a business relationship with the UN

• Material Master data contains all the information on the goods and services that the UN procures, produces, stores, distributes and sells

• Pricing Conditions is a term used to describe the determination of a price calculated on a set of variables that apply when the price is calculated

• Master Data enables rates/prices, terms & conditions to be standardized and applied across multiple offices and departments

• Users, Customers, Materials/Services and Pricing Conditions in SD Module are structured/categorized based on Sales Areas, which consists of Sales Organization, Distribution Channels and Divisions

• Location or site specific information and security authorization are maintained at Plant level

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Agenda


Course Introduction






Course Summary

Course Assessment

Course Survey


Module 3 Objectives


• Recognize the key changes in Billing of UN Common Services

• Explain Billing of UN Common Services

• Identify the process steps




Quotation

A document created to provide a quote to a customer before processing a firm order. The quotation will typically include customer, validity date, prices, quantity delivery date and location of the good or service the customer inquired about

Standard Order

A Standard Order is created when customer confirms the purchase of a product or service. The Order includes customer, material, quantity and delivery information. Standard Orders should be used for regular sales. The order can be created in reference to a quotation or created independently without reference.

Accounts Receivable All business processes related to recording and tracking receivables from Member States, donors, customers, tenants, staff members and any other entity that owes money to the UN

Key Terminology

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As-Is and To-Be Processes

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As Is: Legacy To Be: Umoja

Re-entry of service & billing info. by Account Division no longer required

Account Division reviews & issues the invoices due for billing from the list

Billing request is created on word document & sent to Account Division via email/inter-office mail

The key changes between the As-Is and To-Be Processes of Billing of UN Common Services are:

Account Division reviews, clarifies & then manually keys request into the existing financial system

Self Accounting Unit (SAU) creates quotation, order or credit/debit memo request in SAP

Improved visibility & status tracking (e.g. once invoice is paid, order status is updated automatically)

Bills for same event are submitted at different time from various offices & billed separately to Customer

Contact by email/phone to Account/ Treasury is required to get update on status of the request or payment

Bills from various UN offices can be combined & issued as consolidated invoice to Customer


Sre

Billing of UN Common Services

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Treasury Account Division

Admin. Operation Service

Desk Requestor

Request for Services

Respond to Service Request

Perform Work

Notify Account Division

Charge to Cost Centre

Inter-Office Billing


External Billing

Receive Payments

Service Providing Office

Galileo/

iNeed Umoja

Replaced by SD

Create standard

order Issue Invoice

Copyright © United Nations 42

Step 1: The first step in Billing of UN Common Services may involve a UN Customer (BP) requesting a quotation for services. The customer places an order by telephone, email or fax specifying the terms of the request: services/materials, location, duration, delivery date etc. *Orders are placed outside of Umoja solution, either manually or via legacy system such as iNeed. Example: A UN Agency, in this case UNDP, requests UNIFIL to provide local transportation services.


Order Placed

Create Quotation

Create Standard

Order

Approve Order

Invoice Funds Re-Allotment


Step 2: The Sales Distribution User creates a quotation in the system, which can be printed out and sent to the Customer for review. If Standard Pricing Condition is maintained and the variables in the newly created Quotation (or Order) matches these conditions, the relevant Pricing Conditions will be applied and net price calculated and quoted accordingly. Example: UNIFIL MovCon Officer creates a quotation for local transportation services in Umoja, then prints and sends the quotation to UNDP representative for review and acceptance. If administrative charge of 14% is applicable, the system will calculate and apply this charge to the total price quoted.


Order Placed

Create Quotation

Create Standard

Order

Approve Order



Step 3: The Sales Distribution User creates a Standard Order in the Umoja system. The Standard Order may contain one or several line items; each line item contains critical data about the service to be provided, location for the service/material to be delivered, delivery date and price. This information can be copied from the Quotation document after the customer has accepted the quotation, or can be newly entered into the system. Standard Order may be created after the services have been provided. In this case, it acts as a billing request to the Account Division to invoice the UN Customer. Example: UNIFIL MovCon Officer creates a Standard Order for local transportation services. The order includes UNDP as Business Partner local transportation service as Service material and cost of the service and administrative charges as Price and Pricing Condition.


Order Placed

Create Quotation

Create Standard

Order

Approve Order



Step 4: Once the Standard Order is created, Sales Distribution Approver will be required to review and approve each line item of the Standard Order. Example: After the UNIFIL MovCon Officer creates the Standard Order, the relevant Unit Chief (i.e. Sales Distribution Approver) must approve the order. Approval is by line item, and therefore if the Order consists of 2 different lines of transportation services, then the Approver needs to approve both line items individually.


Note: At this point an Advanced Payment Request can be issued to the UN Customer by indicating the need for down payment in the Standard Order

Order Placed

Create Quotation

Create Standard

Order

Approve Order



Step 5: SD documents such as the Standard Orders due for billing, can be seen and maintained in Maintain Billing Due List screen by Finance (AR User). The AR User will create an invoice from any Standard Order due for billing, review the accuracy of the invoice and issue it to the Customer.

Once the invoice is paid, if the incoming payment contains information e.g. invoice number, that identifies an existing receivable for the same amount, Umoja will establish a match between the two. The receivable will be automatically cleared by the incoming payment.

When there is no match (e.g. invoice number is the same but amounts differ), the automatic clearance will fail. A manual clearing will be performed in the AR unit.

Example: At this point, the relevant Finance Officer in UNIFIL reviewed and issued the invoice to UNDP. Once the payment is received, it will be matched against the relevant AR sub-ledger and the invoice/financial document is cleared.


Order Placed

Create Quotation

Create Standard

Order

Approve Order



Step 6: In accordance with the IPSAS policy the UN will be required to report revenues earned by the Organization. The UN Office of Programme Planning and Budget and Accounts (OPPBA) has decided that all incoming payments, whether internal or external, shall be recorded as revenues. These revenues can be classified as i) internal revenue (spendable), ii) internal revenue (non-spendable), iii) external revenues (spendable) and iv) external revenues (non-spendable).

True costs recovery are considered spendable revenues. Therefore, money booked against spendable revenue accounts will be re-allotted and made available to Budget Owners; while those booked against non-spendable (i.e. real revenues) will be retuned to Member States.

Example: The part of the payment received by UNDP that covers for the true costs of the transport operation (truck, fuels, crew salaries, handing fees, etc.) is re-allotted and made available to UNIFIL MovCon Unit.


Order Placed

Create Quotation

Create Standard

Order

Approve Order




Who is responsible for creating the Quotation and Standard Order in Billing of UN Common Services?


A. Sales Distribution Approver

B. Billing Processor

C. Sales Distribution User

D. Master Data Maintainer

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Who is responsible for creating the Quotation and Standard Order in Billing of UN Common Services?


A. Sales Distribution Approver

B. Billing Processor

C. Sales Distribution User

D. Master Data Maintainer

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Options C is correct. The Sales Distribution User is responsible for the creating the Quotation and Standard Order as part of Billing of UN Common Services.


Module 3 Summary


• The steps required to perform billing of UN Common Services

• Advance Payments requests can be issued in SD

• Bills from various UN offices can be combined & issued as consolidated invoice to Customer

• SD documents due for billing, such as the Standard Order, are visible to the Financial Accounting Senior User in the list of invoices to be reviewed and issued

• The Financial Accounting Senior User will display and issue these invoices to the customers

• In accordance new policy established by OPPBA, all incoming payments will be captured as revenues and booked as either spendable or non-spendable. True costs recoveries are considered as spendable revenues, therefore they will be re-allotted and made available to the Budget Owner. Non-spendable (i.e. real revenues) will be retuned to Member States



Agenda


Course Introduction






Course Summary

Course Assessment

Course Survey


Module 4 Objectives


• Recognize the key changes in the Sale or Donation of Inventory and Assets

• Explain Sale or Donation of Inventory and Assets

• Identify the process steps




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Solicitation of offers for the assets and inventory is carried out in Umoja SRM module

Assets and inventory to be disposed are identified in Galileo WODM

The key changes between the As-Is and To-Be Processes of the Sale or Donation of Inventory/Assets are:

Solicitation of offers is carried out in legacy system or word document & email; no standardized/consistent process

Assets and inventory to be disposed are identified in Galileo WODM (no change)

Doc. chains regarding the solicitation process, award, sales, billing and payment are captured in the SAP. Galileo WODM manage the material from disposal to buyer collection

Award notification, sales contract & billing request are created on word document

Galileo WODM manage the material lifecycle from disposal to buyer collection; and maintains all other pertaining processes and transactions in the form of PDF files

Standard Order will be created in SD to initiate billing and can be used as award notification


Disposal by Sale of UN Inventory/Assets

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Inventory/Asset Owner

Inventory/ Asset Owner

Dispose Inventory/

Asset by Sale Solicit Offers

Award Contract


External Billing

Receive Payments

Procurement

Galileo/

Legacy Systems Umoja

Replaced by SD

Create standard

order Issue Invoice


Step 1: The list of assets and inventory to be disposed or donated is identified in Galileo WODM and submitted for approval by the Local or Headquarter Property Survey Board. Example: UNIFIL is planning to dispose used vehicles and Material Handling Equipment (MHE) through sales.

Galileo WODM

Create/ Approve Shopping

Cart

Solicitation or Donation

Create Standard

Order

Approve Order

Invoice Deliver Order

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Sale or Donation of Inventory/Assets

Galileo Processes

Umoja Processes

Note: Process Steps regarding the identification and approval of items to be disposed or donated are completed outside Umoja for PKs and SPMs since inventory and assets are maintained in Galileo.


Step 2: An unfunded Shopping Cart needs to be created and approved in Umoja SRM module for Procurement to be able to carry out the required solicitation process. The Shopping Cart shall contain the line item(s) associated with the material(s) or asset(s) to be disposed of by sale. Example: A Shopping Cart, containing the used vehicles and MHEs to be disposed by method of sales, is created and approved by UNIFIL Property Management Unit and submitted to the local Procurement Office for action.

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Note : This process happens in SRM, similar to the normal Procure to Pay processes


Galileo WODM


Cart


Create Standard

Order

Approve Order



Step 3: A solicitation will be conducted by Procurement to solicit bidders for the good to be disposed. Offers are evaluated and lots awarded to the highest bidder. Example: Procurement Officer issues an Invitation to Bid (ITB) to solicit offers from potential buyers of UNIFIL’s vehicles and MHEs. A number of offers may be received from commercial buyers and NGOs, and the contract is awarded to the highest bidder.

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Galileo WODM


Cart


Create Standard

Order

Approve Order


Note : This process happens in SRM, similar to the normal Procure to Pay processes



Step 4: Once the lots are awarded, the Sales Distribution User will create a Standard Order in SD. The Standard Order shall contain the customer information, currency and terms of payment, terms of delivery and delivery address, etc. directly derived from the Customer Master Data or manually entered or changed by the User. The SRM solicitation document number shall be keyed as a reference number in the Sales Order. There is no systematic linkage of the solicitation processes conducted in SRM and Sales Order issued in ECC. Example: Upon the receipt of the notification from Procurement that award has been made to the highest bidder, UNIFIL Property Management Unit creates a Standard Order in Umoja ECC system.

Galileo WODM


Cart


Create Standard

Order

Approve Order




Step 4: SD User shall select a generic service item called “Sale of Asset or Equipment” as line item when issuing Standard Order for Sales of Inventory and Asset. The line item details such as the actual descriptions of the materials, equipment and asset, and their associated serial numbers and quantities shall be entered as text in the text field section. PKs and SPMs inventory/assets are maintained in Galileo, and the selection of the a ‘material’ line item in the Standard Order will trigger undesired availability check and inventory action. For donations in PKs and SPMs, existing procedures in association with Galileo shall be maintained. Standard Orders shall be created only to claim the additional charges such as labors, handling fees, freight, insurance, etc. Example: Upon the receipt of the notification from Procurement that award has been made to the highest bidder, UNIFIL Property Management Unit creates a Standard Order in Umoja ECC system.

Galileo WODM


Cart


Create Standard

Order

Approve Order




Step 5: The newly created Standard Order requires the approval of the Sales Distribution Approver. The Sale Distribution Approver will be required to review and approve each line item of the Standard Order. Once this is complete, the approved Standard Order appears in the billing due list. Example: The Chief of the UNIFIL Property Management Unit reviews the Standard Order created against the award for sales of the used vehicles and MHEs made by Procurement; and if all the information is correct, approves the Standard Order.

Galileo WODM


Cart


Create Standard

Order

Approve Order




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Step 6: The Standard Orders due for billing, can be seen and maintained in Maintain Billing Due List screen by Finance (AR User). The AR User will create an invoice from any Standard Order due for billing, review the accuracy of the invoice and issue it to the Customer. Once the invoice is paid, if the incoming payment contains information e.g. invoice number, that identifies an existing receivable for the same amount, Umoja will establish a match between the two. The receivable will be automatically cleared by the incoming payment. When there is no match (e.g. invoice number is the same but amounts differ), the automatic clearance will fail. A manual clearing will be performed in the AR unit. Example: The relevant Finance Officer or Accountant in UNIFIL reviews the document due for billing and issues an invoice to the successful Buyer (i.e. Customer). The Buyer pays the invoice and once the bank statement is uploaded to the Umoja system the invoice is automatically cleared.

Galileo WODM


Cart


Create Standard

Order

Approve Order




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Step 7: Once payment has been received and the invoice has cleared, the pick-up or delivery of the inventory/assets is arranged and completed outside Umoja. This process is executed and recorded in Galileo WODM. Example: The Buyer (i.e. Customer) coordinates the collection of the vehicles and MHEs with UNIFIL MovCon and the sales is completed.

Galileo WODM


Cart


Create Standard

Order

Approve Order




When creating a Standard Order for disposed assets, what line item in the Standard Order must the SD User use for the goods being sold?


A. Using the real number of the goods

B. Using the generic “Sale of Asset or Equipment” field

C. Using the name of the goods

D. There is no standard for referencing the goods

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When creating a Standard Order for disposed assets, what line item in the Standard Order must the SD User use for the goods being sold?


A. Using the real number of the goods

B. Using the generic “Sale of Asset or Equipment” field

C. Using the name of the goods

D. There is no standard for referencing the goods

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Options B is correct. Since Peacekeeping assets and inventory are currently managed in Galileo, the SD User will not be able to enter the real number when creating the sales order, hence a generic field called “Sale of Asset or Equipment” will be used.



• Assets and inventory to be disposed in PKs and SPMs are identified in Galileo WODM and issued through this system

• It is necessary to Create and Approve an unfunded Shopping Cart in SRM to initiate the solicitation process for sales of UN inventory/asset in Procurement

• A Standard Order will be created for a successful bidder with reference to the solicitation document number and must be submitted for approval by an SD Approver

• Donation of assets and inventory in PKs and SPMs, will be carried out in accordance with the existing procedures in association with Galileo. Standard Orders shall be created only to claim the additional charges such as labors, handling fees, freight, insurance, etc.

• The assets and inventory items currently managed in Galileo, the SD user will not be able to enter the real number of the items when creating a Standard Order, and must therefore use the generic “Sale of Asset or Equipment” material in the line item

Module 4 Summary



Agenda


Course Introduction






Course Summary

Course Assessment

Course Survey


Module 5 Objectives


• Recognize the key changes in third party procurement

• Explain third party procurement

• Identify the process steps for third party procurement




Shopping Cart It is used in Umoja SRM instead of the current Purchase Requisitions. When approved, Shopping Carts may result in a Purchase Order or a Solicitation Document to Vendors

Purchase Order A buyer-generated document that authorizes a purchase transaction

Sub-Ledger A subsidiary ledger is a supporting ledger that provides detailed information about individual accounts

Goods Receipt A document generated to acknowledge receipt of items listed in it

Service Entry Receipt A document generated to acknowledge receipt of services listed in it

Key Terminology

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Dummy ‘$1’ requisition is created in legacy system to initiate procurement action; no link to financial system

The key changes between the As-Is and To-Be processes of the third party procurement are:

Standard Order is created in SAP, which auto generates a requisition for procurement action

AR, linked to the Standard Order, funds procurement action (that is, AR enables AP)

Billing request is created on word doc and sent to Account Division via email/inter-office mail

Initial cash outlay may still be required but actual fund allocation is not needed

Down payment or advancement of UN fund is required

Improved visibility and reporting capability with third party inventory tracked separately in Umoja

Galileo does not captured third party inventory; items are physically separated in the warehouse


Third Party Procurement

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Admin. Buyer Admin.

Other UN Organization (External to

Umoja)

Request the UN to

Procure Inventory/ Asset on Its

Behalf

Create Requisition

Issue Purchase against

Contract


External Billing

Receive Payment

Receive Invoices

Make Payment

Galileo/

Legacy Systems Umoja

Procurement

Replaced by SD

Create standard

order

Release Billing Doc.

Issue Invoice

Umoja


Step 1: When the UN Agency or any other entity external to Umoja requests the UN to procure services or materials on its behalf, UN may agree to:

1. Purchase and pay for the goods or service and invoice the UN agency to recover the cost plus any other applicable fees

2. Conduct solicitation process on behalf of the UN agency and request the UN Agency to issue the Purchase Order and pay the vendor directly

3. Allow the UN agency to contact the vendor directly and buy off the system contract that the UN has established with that vendor

Only point 1 is considered as third party procurement. Example: UNIFIL purchases computers against an established UN System contract for UNCTAD.

Order Placed

Create Quotation

Create Standard

Order

Approve Order

Create Purchase

Order

Process Vendor Invoice

Issue Invoice to Customer

Shopping Cart

Approve Shopping

Cart



Step 2: The Sales Distribution User can, if required, create a quotation in the system, which can be printed out and sent to the customer for review. If Standard Pricing Condition is maintained and the variables in the newly created Quotation (or Order) matches these conditions, the relevant Pricing Conditions will be applied and net price calculated and quoted accordingly. Example: Procurement Officer at UNIFIL creates a quotation and sends it to UNCTAD for review and confirmation.

Note: This is an optional step in the process.


Order Placed

Create Quotation

Create Standard

Order

Approve Order

Create Purchase

Order



Shopping Cart

Approve Shopping

Cart


Step 3: The Sales Distribution User creates a Standard Order with the relevant line item category changed to third party procurement. Order information can be copied from the Quotation or entered manually such as customer details, delivery address, materials/services, quantity and price. Example: Admin. Officer in UNIFIL Procurement creates a Standard Order for UNCTAD, which auto-generates a Purchase Requisition for approval by Chief Admin. Officer or Chief Procurement Officer.


Order Placed

Create Quotation

Create Standard

Order

Approve Order

Create Purchase

Order



Shopping Cart

Approve Shopping

Cart


Step 4: After the Standard Order is created, the Sale Distribution Approver will be required to review and approve each line item of the Standard Order. Each line item of the Standard Order that has its category changed to third party procurement will generate an external Purchase Requisition for procurement action. Example: Chief Admin. Officer or Chief Procurement Officer logs onto Umoja ECC and approves each line item of the Standard Order for computers and accessories for UNCTAD. He/she will then need to log onto Umoja SRM to review and approve the corresponding purchase requisitions generated for procurement action.


Order Placed

Create Quotation

Create Standard

Order

Approve Order

Create Purchase

Order



Shopping Cart

Approve Shopping

Cart


Step 5: The Purchase Requisition in the form of a Shopping Cart will be available in the Umoja SRM Workflow for the Source to Acquire: Approver (this is different a Enterprise Role in the Procurement process) to approve. The approved Shopping Cart will be processed in SRM in accordance with the procedures set forth in the UN Procurement Manual. Purchase Requisition for third party procurement is not funded by an allotted UN budget but against an AR sub-ledger which will be invoiced to the third party. Example: The Chief Admin. Officer or Procurement Officer approves the relevant shopping cart(s) in Umoja SRM. The Procurement officer responsible for procuring computers and accessories on behalf of UNTAC is then assigned the purchase requisition to carry out the solicitation process accordingly.


Order Placed

Create Quotation

Create Standard

Order

Approve Order

Create Purchase

Order



Shopping Cart

Approve Shopping

Cart


Step 6: The approved requisition will be used by the relevant Procurement Officer to cut a Purchase Order on behalf of the third party.

The Purchase Order also becomes a financial obligation document that enable UN to pay the Vendor after services have been fulfilled.

Example: The Procurement Officer completed the solicitation exercise and use the relevant purchase requisition to issue a Purchase Order to the successful vendor.


Order Placed

Create Quotation

Create Standard

Order

Approve Order

Create Purchase

Order



Shopping Cart

Approve Shopping

Cart


Step 7: After the goods or services are received, the Vendor submits an invoice, where it is matched against the Purchase Order and Goods Receipt (or the Service Entry Sheet).

The payment will be processed in accordance with the contractual term, and the associated AP document is then matched against and AR document generated by the Standard Order for third party procurement.

Example: UNIFIL Account Division receives and posts the invoice in the Umoja system. The system verifies that the items have been received, matches the received items against the PO and authorized payment to the vendor.


Order Placed

Create Quotation

Create Standard

Order

Approve Order

Create Purchase

Order



Shopping Cart

Approve Shopping

Cart


Step 8: The Finance (AR User) maintains the Standard Orders due for billing due in connection with the goods and services procured for the third party. The AR User will create an invoice from any Standard Order due for billing, review the accuracy of the invoice and issue it to the customer.

After the invoice is paid, if the incoming payment contains information for example, invoice number, that identifies an existing receivable for the same amount, Umoja will establish a match between the two. The receivable will be automatically cleared by the incoming payment when there is no match (for example, invoice number is the same but amounts differ), the automatic clearance will fail. A manual clearing will be performed in the AR unit.

Example: The relevant Finance Officer or Accountant in UNIFIL reviews the document due for billing and issues an invoice to the Customer. The Customer pays the invoice and once the bank statement is uploaded to the Umoja system the invoice is automatically cleared.


Order Placed

Create Quotation

Create Standard

Order

Approve Order

Create Purchase

Order



Shopping Cart

Approve Shopping

Cart



What is automatically generated when each Standard Order line item has its category changed to third party procurement?


A. An Invoice

B. A Purchase Order

C. A Shopping Cart

D. A Goods Receipt

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What is automatically generated when each Standard Order line item has its category changed to third party procurement?


A. An Invoice

B. A Purchase Order

C. A Shopping Cart

D. A Goods Receipt

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Option C is correct. In third party procurement, each approved Standard Order line item will automatically generate an external purchase requisition (Shopping Cart) in SRM.


Module 5 Summary


• The steps required to perform third party procurement

• When a line item of a Standard Order has its category changed to third party procurement, it will auto generate a purchase requisition for procurement action

• A Sales Order can be linked to a Purchase Order in Umoja; thereby matching an (AR) of a Customer with an (AP) of a Vendor Third Party Procurement functionality in SD will result in improved visibility & reporting capability of the UN procurement activity with third party procurement action and inventory tracked separately in SAP

81


Agenda


Course Introduction






Course Summary

Course Assessment

Course Survey


Course Summary

83

The key points covered in this course are listed below:

• Services to Public & Staff utilizes Umoja Sales & Distribution module to manage multiple revenue generating activities

• The Umoja Implementation will allow for global price/rate standardization, enhanced work integration and streamlined processes, improved budget control, improved cost recovery and re-allocation and support the UN’s adoption of IPSAS

• Services to Public & Staff will utilize customer, material and pricing Master Data that will enable full integration of Umoja, thereby minimizing data entry requirements

• Billing from various UN offices can be combined & issued as a consolidated invoice to a customer

• Visibility and payment status tracking will improve with an integrated SD Standard Order and Invoicing module of Umoja

• In Third Party Procurement, Standard Orders created in SAP will auto generate a purchase requisition for procurement action. This will allow for improved visibility & reporting capability of third party inventory



Agenda


Course Introduction






Course Summary

Course Assessment

Course Survey


Course Assessment

Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment.

To receive credit for completing this course, you must pass this assessment with a minimum score of 90%.

To complete the assessment you must return to the Learning Management System:

1. Log into Inspira

2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning

3. Search for the name of the course under the My Learning Activities section

4. Click the Start link of the course assessment

5. Click the Submit button once you have completed the assessment

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Agenda


Course Introduction






Course Summary

Course Assessment

Course Survey


Course Survey

87

Your feedback is important to the continuous improvement of our training program.

Please complete the evaluation for this course using the following steps:

1. Log into Inspira

2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning

3. Search for the name of the course under the My Learning Activities section

4. Click the Start link of the course survey

5. Click the Submit button once you have completed the course survey


Congratulations! You have successfully completed the

Umoja Services to Public & Staff Overview course.

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Date post:	22-Oct-2015
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CS114 Umoja Services to Public and Staff Overview v15 RFP

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