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Application and Infrastructure Solutions

Australia | Canada | France | Germany | India | New Zealand | Singapore | Switzerland | UAE | UK | USA

Presentation By:

Ravi Singh.Preeti Arora.

Swadha Mishra.

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Contents

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Purchase Order AnIntroduction.

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What Is A Purchase Order (PO)

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Who Issues a Purchase Order?

Either a Purchasing Agent or a Purchase Department.

Information On A Purchase Order?

It contains description of services, quantity, agreed rate,total cost, payment terms, delivery date and also includescontact information/address.

The most important item regarding a PO, is the uniquenumber of the PO. This number will be used to track projectdeliverables, milestone achieved (if any), amount paid etc.

Information On A Purchase Order (PO)

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PO - Sample.

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Purchase Order Why Demande

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Reasons For The Demand Of PO

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Purchase Order Advantages.

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Advantages At A Glance

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Purchase Order Workflow.

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Sta

rt

Clien

t

X

Service

Purchase

Department

Vendor 1

Vendor 2(Ex:

Keane)

Vendor 3

EndPO

Allotted

ProjectSetup &

SOW

If

Yes

Manageme

ntsApproval

A

A

IfNo

Stop

Main Contents of SOW - Billing Terms (Monthly/Weekly etc) Billing Address. Payment Terms (Net 30/Net45/Net 60 etc) Nature of Project Types of Billing.

PO Process Flow

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Purchase Order - Fact Sheet.

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% of PO Driven Clients - UK

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Collection Against Overdue, Collection Against PO Driven Clients &% of Disputed Invoice In PO Driven Clients - UK

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Issues With Purchase Order

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Project

PO 1 PO 2 PO 3

Disputed Invoice

I. Insufficient Fund in PO

Insufficient funds in PO but still billing went ahead and raised anInvoice (when single PO allotted to a project).

When multiple POs (allotted to a single project) are included in aninvoice and invoice is rejected due to insufficient funds in any ofthe PO.

Example - Suppose Billing generated an ABC Invoice of $20k ($10kto be received from PO 1, $5k to be received from PO 2 & another$5k from PO 3) but funds are only available in PO 1 and PO 2. As aresult, the Invoice generated will be rejected by the client.

When client utilized the funds available in any of the PO allotted toKeane to pay invoices of other client, then the Invoice raised

against that PO will be rejected.

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II. PO Closed

Timeline allotted to a PO by the client expired but billing still wentahead and raised an Invoice.

Funds allotted to a PO paid by the client in full still billing wentahead and raised an Invoice against the same PO.

When multiple POs (allotted to a single project) are included in aninvoice and invoice is rejected either because the timeline allottedto any of the PO has expired or fund allotted to a any of the PO has

been paid by the client in full .

Issues With Purchase Order Contd..

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III. Wrong PO

When billing raised an Invoice against a wrong PO either due tomanual error or against an already closed PO.

Change request (CR) regarding PO not received timely by CIPI teamfrom delivery.

CIPI Team failed to update the change request timely.

Issues With Purchase Order Contd..

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Purchase Order Implications.

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Purchase Order - Implications

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Purchase Order - Possible Resolut

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I. In case of projects with multiple POs:

A PO Tracker should be maintained by billing team to track downall the relevant PO details like funds available in the PO, timeperiod of PO, number of Billing done etc as PeopleSoft does notsupport multiple POs.

II. In case of a project with single PO:

Where PO information is not in the system but is on projectgeneral page, the billing team should maintain a PO tracker totrack down all the relevant PO information.

Where PO information is available in the system, the billingteam should pull the system generated report to track down allthe relevant PO details like funds available in the PO, time periodof PO, number of billing done etc.

Only after viewing the PO tracker or system generated report,the billing team should start the billing activities.

Purchase Order - Possible Resolution

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Australia | Canada | France | Germany | India | New Zealand |

Singapore | Switzerland | UAE | UK | USA

Keane Corporate Headquarters

100 City Square

Boston, MA 02129Toll free: +1 877.88.KEANE

www.keane.com

CONFIDENTIALITY C TM

Questions?

Thank You.