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Old 08-06-2009, 03:54 PM
000000038076
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Default Services PO Management

Hi,
I am interested in learning about various methods used to manage service related purchase orders. These would include construction, break/fix, consulting and technical services.

We are trying to optimize our processes which are tightly bound to the 3-way match between PO/Goods Receipt/and Invoice. This becomes problematic when working with services which require validation of services being completed, multiple and variable cost invoices, and longer time frames in which the PO would remain open and available to invoice against.

We have looked at fitting it within our current processes, assigning specialty Buyers for service procurement, and implementing a services procurement module to our purchasing system.

I'd like to start a dialogue with someone who has had similar challenges, or learn from some of best practices implemented by your companies.

Thanks,
John
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Old 08-12-2009, 11:50 AM
mendocr
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Default Service Management

Here are some of my suggestions:

Defining scope in detail is important.

Try to assign service master to each line items of service.

Break scope into items and sub items

This way, you can have three way match, accept service as it is completed line item by line item. It all depends on what system you are using.
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  #3  
Old 08-28-2009, 09:50 PM
dlwtmgltd
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Default Servicies po management

I suggest you consider doing a document and activity flow chart of all or part of your organization, as appropriate, that is affected by service POs. We did this at one of my previous employers for our entire organization and it worked quite well. We were able to visualize how we were doing things as opposed to how we thought they were being done.

Additionally, the flow chart took on the feel of a real model and we started taping or hanging actual documents that we used on it at various points in the depicted processes, e.g., POs, requisitions, BoMs, RFQs, etc., so that we were able to better visualize how things were being done. Once this was complete, it was much easier to see how and where we needed to make improvements and changes. Took us about four to six months, but was worth it in the end. This flow chart became an invaluable reference later when we started the process to replace our entire IT system.

Everybody in the organization had an assignment to flow chart what they did. Then we fit them together somewhat like a jig saw puzzle. Our final flow chart consumed an entire wall in a 15 x 24 conference room.
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Old 01-09-2010, 12:37 AM
dost
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Smile PO's for Services

Hi,
it depends what software you are using, if you were using Oracle iProc you could issue PO's both for Goods or services, and this can be split @ line level, and the expenses can be allocated to multiple projects from the PR creation stage. the approval work flow allows you to route through Fin Ops to review and approve the expenses. You can put tolerance to accomodate the variance you mentioned.

the other option is that if you know the total budget or project cost you can create blanket PO this can create the budget encumbrance for that value so you can monitor as you progress, same time you can create PR release on each mile stone if its a progressive billing, based on qty surveyors with BOM consumed, this way you can attach the QS report to the PR release to release the PO, and the concerned project engineer can review the report attached to the PR/PO release and do the online IPROC recieving to create the accrual and AP can release the approved payment against the approved PO.

Alternatively you can research on Project Management modules that has integrated P2P modules, if you are looking for economical solutions then you should looks for SAAS like smartturn, contact and check with them if they can configure your requirements.

Hope this helps
regards
Syed Khan. MCIPS. C.P.P. C.P.M.
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