Purchasing Insight

Purchase to Pay, Purchasing & Procurement Process, Electronic Invoicing

Browsing Posts tagged Oracle

Again, we’re delighted to welcome Simon Shorthose, MD Readsoft UK,  as a guest contributor

Many organisations are currently operating on Oracle Applications Release 12 or are planning to do so in the near future.  With Release 12, Oracle boasts over 2300 new features over Oracle 11i, with over 300 in Oracle Financials. The application has been geared towards enhanced support for shared services, increased operational efficiency and flexibility, faster and simpler period end processing and timely and simplified reporting.

For the finance function, the requirement to eliminate inefficiencies in purchase to pay (P2P) and order to cash (O2C) processes in a central concern. They need better process visibility and compliance; better cycle time; and want to see continual cost reduction. continue reading…

Purchase to Pay, P2P and Dynamic Discounting

The selection of procurement software is no – absolutely not – a technical decision.

The successful implementation of Purchase to Pay Processes in a global environment has many challenges. In a short series of items, Purchasing Insight discusses some of the pitfalls. In the second, we look at the procurement software options, the challenges in making the right choice, integration issues and some pointers towards the right route.

Procurement Software

The selection of procurement software is far from straight forward. Although every organization considers itself to be special or different, in reality, there’s no such thing as unique from a P2P perspective. All organizations do more or less the same things. And if you are looking to accommodate the idiosyncrasies that do make your organization unique, you can be sure you at too low a level of detail.

This makes the first choice easy. Build or buy? Purchase to Pay and procurement software are not at the bleeding edge. In 2010, the market is mature and there is a wide range of solutions. The option to build (or adapt an existing solution) should not be in your list of options.

So what are the options? It is usually a safe assumption that the choice of finance system is separate from the selection of a Purchase to Pay system. (Finance systems are a fundamental part of the foundation of an organization that spans much wider than procurement and supply chain.)

The Options

Use you ERP Vendors Module

Some ERP vendors’ procurement and P2P modules are best in class even in isolation from their core finance systems, SAP and Oracle being good examples. But it’s not quite as simple as that. SAP is especially strong in a manufacturing environment but for a financial services company for whom procurement processes are fundamentally different it would SAP would be an unusual choice.

The key benefit of following the finance system lead is integration. Vendor master data may already exist. Version upgrades are a non-issue and there are no interfaces to be managed. The key question however is does it deliver the P2P benefits you want? Great integration doesn’t help if you can’t get suppliers to adopt your purchasing processes.

Third Party Vendors

If your finance system is second tier or lower or is not specific to your industry, third party vendors are a likely optimum choice. Ariba is amongst the best in class for eprocurement and esourcing but will also accomodate electronic invoicing, EIPP and Dynamic Discounting and with a proven track record of implementing alongside a wide range of finance systems Ariba should be included in most short lists.

But also look at the new kids on the block. Coupa for example is a cloud  based service that is seeing some success competing with Ariba in the SMB space. Specilialst vendors such as Basware with an einvoicing heritage are extending their reach and should be including in the mix.

A summary of Purchase to Pay Software is here.


There’s an adage in investment circles: “I can guarantee I can double your money (I just can’t tell you how long it will take)”. It’s like that with Procurement Software and all business software – it will do what ever you want it to do – it’s just a matter of time and money and in business it’s the time and the money that count. The selection of the right procurement software is not about headline cost and it’s not – absolutely not – a technical decision.

Purchase to Pay, P2P and Dynamic DiscountingIn the depths of a recession, discretionary spend is the first targetfor cost avoidance and Enterprise application upgrades are easy to avoid. But if your organization uses PeopleSoft Financials 8.8, 8.9 or 9.0, an upgrade to 9.1 might just make sense as a means of avoiding cost.

PeopleSoft Enterprise Financial Management Solutions 9.1 focuses on improvements to period close, cash management and financial control and, importantly, introduces Dynamic Discounting and now is exactly the right time to take advantage of it.

Dynamic Discounting offers buyers an opportunity to generate over 30% return on capital. And you struggle to justify the cost of an upgrade? You can’t afford not to take a piece of this.

About Dynamic Discounting in PeopleSoft eSettlements 9.1

Organizations continue to look for ways to improve their cash management, optimize their working capital and a key area to focus on is recognizing discounts on liabilities.  Suppliers are now making this even more attractive by offering more discounts for early payments.

Dynamic Discounting in PeopleSoft eSettlements 9.1, enables suppliers to offer automated discounts for buyers who elect to pay their invoices early. Both suppliers and buyers can benefit from this new feature.  Whereas suppliers have always had the option to sell receivables to factoring companies or other lenders, Dynamic Discounting eliminates the need for third-party intermediaries, giving suppliers more direct access to funds.  Suppliers gain greater control over their invoicing policy and can better manage their receivable-based working capital by reducing their day sales outstanding (DSO) and ensuring on-time payment by giving buyers an incentive to pay invoices sooner.

From a buyer perspective, Dynamic Discounting offers the ability to recognize additional discount rates thus reducing the liabilities on the balance sheet and costs on the P&L.

The discount analysis tool in PeopleSoft eSettlements 9.1.is designed to assist the supplier and buyer by searching for scheduled payments, creating or accepting offers with the least discount for the capital required by a given date.  This allows the supplier or buyer the ability to analyze their working capital and attempt to create better offers and accept offers that support their working capital objectives.