6 Replies Latest reply on Jan 24, 2011 11:18 AM by Kory Schutz

    Utility Bills

    Owain Kelly Newbie

      Gas, Water, Electricity. Every organisation has to pay for these things. I'm wondering if anyone has devised or discovered an innovative way to deal with these sorts of regular payments, which don't usually have an invoice or a PO.

       

      Contracts is a potential option, but what if that isn't available?

        • Re: Utility Bills
          Donna Ashworth Newbie

          Hi Owain,

           

          We are having the same dilemma as to the best way to pay these reoccuring invoices.  As stated, you could put it in the Contracts Module, however, we don't really have a contract with these vendors.  I would be interested to see what others have implemented within their companies.

           

          Donna Ashworth

          • Re: Utility Bills
            Michelle Vergara Novice
            You can still use the Contracts Module, BPO feature, and set it up as a recurring payment.  (Who says you actually have to have a contract in order to use the Contracts features?)  However, the invoice agent will still need to go into Ariba and create the invoice.  This is an issue with our AP department because of fear that they would forget and incur late payment fees, which is why we do not use this process.  I don't know if the Milestones sends out reminders.  It may be something worth testing.
            • Re: Utility Bills
              Russ Stebbins Master

              Owain,

               

              I don't understand why these payments don't have an invoice.  How do you know what you have to pay each month?  I understand that the invoice may not have a lot of detail but there should still be some notice from the utility leting you know they want their money.

               

              Are these fixed costs?

                • Re: Utility Bills
                  Owain Kelly Newbie

                  The issue is around the fact that the utility companies provide a monthly bill against a customer account number. Each bill does not have a unique invoice reference, just this account number. So when processing the bill, the AP team will receive exception errors suggesting this has already been processed.

                • Re: Utility Bills
                  Kory Schutz Apprentice

                  We have been processing utility bills in a couple of ways.  There are two kinds of utility bills that we receive.  One is directly from the utility company - electric, heating fuel, and water/sewer.  For these direct invoices, we create a non-PO invoice and based on our configured rules, the invoice routes for approvals in Ariba.  Since we have centralized accounting for utilities, approval is quick.  However, this does require AP to know which commodity code to enter when creating the invoice.  We have handled this by having a key person in AP attach a coversheet with the accounting and the appropriate commodity code to the invoice before data entry.

                   

                  The second kind of utility bill that we receive is one where the property owner is looking for a reimbursement for utility costs that are not included in the rent of the building.  These are not as time sensitive since the property manager has already paid the utility company.  We require the client to create a requisition for these.  I suppose that even this could be submitted as a non-PO invoice.  The Commodity Manager for utilities prefers that the business take responsibility for their own sites.  This takes some of the pressure off of AP.

                   

                  We are exploring the use of contracts as well, but I think more important is getting the utilities to submit electronically to remove the necessity of manual entry by AP.  The use of a pCard or Credit Card is another option which could streamline this type of payment.  However, many do not accept this form of payment.