I'm working on an Ariba On-Demand project where we have implement P2P and Contract Management. We have had a number of gotcha's during our post-implentation which depending on the set up of the contract, has made it difficult for stakeholders. If a contract with a large number of lines for every possible report is created, Accounts Payable can have trouble matching up the right line item on a paper invoice. If a bulk PO is created without line item detail, there can be invoice exceptions generated for price and quantity, slowing the approval process by our Requesters. I think you get the picture. We have over 140 different departments over 3 lines of business who purchase various consumer and business related reports, some on a regular basis and some on demand. We literally process over 2000 paper invoices from this vendor a year.
It seems like there has to be a paradigm shift in our thinking of how we negotiate, set up these agreements, and manage our vendors in Ariba to prevent downstream process inefficiencies which jeopardize the original value proposition. Which brings me to my specific question about Lexis Nexis, but I'll keep the questions generic so folks can respond with their best practices using any particular vendor as an example.
How have other companies structured contracts in Ariba? Release, Non-release, Catalog? Line item details or not? Why?
How have you handled contract expiration dates? How tight are you making them? If you configure contracts differently, under what circumstances?
How are you handling accounting in contracts? Do you have an enterprise contract with an approved maximum which all departments can use? Or do you create line of business contracts to segment the expense?
How are you successful requiring electronic invoice submission?
And anything else you'd like to brag about....
Hi Kory...thanks for the post! This is a great question. To help get a reply, I have sent this over to our Best Practice team and Global Services Organization. Just wanted you to know we are working on this!