SECTION OVERVIEW AND POLICIES

The eSettlements module in the Statewide Financial System (SFS) provides online agencies with the ability to receive electronic invoices (e-invoices) from vendors.

The SFS enables all vendors with a classification that identifies them as “open for ordering” to submit electronic invoices.

Agencies should refer to Chapter X, Section 4.A - Vendor Classifications of this Guide for guidance related to vendor classifications and ordering status.

Vendors doing business with bulkload agencies will continue to submit invoices to those agencies as usual.

The purpose of this section is to provide guidance to online agencies about identifying and processing e-invoices in the SFS.

Electronic Invoice Sources

SECTION OVERVIEW AND POLICIES

This section provides information to agencies regarding the methods vendors may use to submit electronic invoices.

Process and Transaction Preparation:

Electronic invoices may enter the eSettlements module via the following entry methods:

• Direct Entry (Voucher Source = Self Service Invoice)
• File Transfer from Vendor Billing Systems (Voucher Source = XML)

Direct Entry

The direct entry method is designed for vendors that submit a small number of invoices per month. Vendors will enter the eSupplier portal and manually enter invoices in the eSettlements module. Vendors will have the ability to attach supporting documents (up to two megabytes per attachment) to the electronic invoice. The attached documents will be available to the agency on the voucher in the Accounts Payable module. Agencies should refer to Section 4.E – Supporting Documents Associated with Electronic Invoices of this Chapter, for more information regarding attachments.

File Transfer from Vendor Billing Systems

The file transfer method is designed for vendors that submit a large number of invoices per month. To set up and use this method, vendors must work with the Statewide Financial System agency. Vendors will send electronic invoices in an XML file format to eSettlements from their billing systems. Vendors can submit multiple invoices in one batch file. However, vendors that submit invoices via this method cannot attach supporting documents to the XML file. Agencies should refer to Section 4.E.3 – Supporting Documents Associated with Electronic Invoices of this Chapter, for more information regarding receiving attachments associated with invoices submitted via XML files.

Electronic Invoicing Process

SECTION OVERVIEW AND POLICIES

This section provides online agencies with guidance regarding the electronic invoicing process from the time the vendor submits the electronic invoice to the eSettlements module to the time the invoice is built into a voucher.

Process and Transaction Preparation:

Vendors enrolled in eInvoicing through the New York State Vendor Self Service Portal can submit electronic invoices to State agencies through the eSettlements module. eSettlements will only accept electronic invoices that reference a Purchase Order (PO). As such, agencies must issue PO to obtain goods or services from vendors that submit electronic invoices, as detailed in Chapter XI-A, Section 3 – Purchase Orders of this Guide. Agencies may not refuse to issue POs to vendors that wish to submit electronic invoices into the SFS.

Participating vendors begin the electronic invoicing process by creating an electronic invoice in the eSettlements module or by submitting an electronic invoice to the eSettlements module directly from their billing systems. Upon submittal, the invoice will process through the initial validations in eSettlements. Among other things, the validations ensure the invoice contains all fields required to successfully build a voucher. If the invoice fails validations, eSettlements will reject the invoice and send an email to the vendor detailing the reason for the failure. The vendor is responsible for resolving the issues and submitting a new, proper invoice. The rejection and email notification are automated processes and, as such, agencies do not need to take action on invoices that fail initial validations.

If the invoice passes the initial validations, it will be selected for processing by the Voucher Build process. If the invoice passes the pre-edit and edit processes within the Voucher Build process, the SFS will create a voucher from the invoice in the Accounts Payable module.

Agencies should refer to Section 4.E – Addressing Invoices that Fail Voucher Build of this Chapter for guidance regarding vouchers created from electronic invoices that fail in the Voucher Build process. Agencies should refer to Section 4.E – Identifying and Processing Vouchers of this Chapter for more information regarding processing vouchers created from electronic Invoices.

The following diagram outlines the stages involved in the electronic invoicing process.

Supporting Documents Associated with Electronic Invoices

SECTION OVERVIEW AND POLICIES

This section provides agencies with guidance regarding receiving, processing, and storing documents that support electronic invoices.

Agencies are responsible for implementing record retention and disposition schedules in accordance with New York Codes, Rules and Regulations, Part 188 and the guidelines promulgated by the New York State Archives and Record Retention Administration. Agencies should refer to Section 3 – Record Retention – Accounts Payable Vouchers and Land Claims of this Chapter, for more information about record retention requirements for Accounts Payable vouchers.

Process and Transaction Preparation:

Vendors that enter invoices directly into eSettlements may attach supporting documents to the invoice (up to two megabytes per attachment). Vendors that submit electronic invoices from their billing systems do not have the ability to attach supporting documents to their invoices.

When a vendor cannot attach supporting documents to an electronic invoice due to the file size or entry method, agencies should instruct the vendor to submit the supporting documents using another method. For example, the vendor could mail or email supporting documentation to the agency. Agencies must have a system to maintain and retrieve the supporting documents that are not within the Statewide Financial System. The diagram shown below depicts a high level process flow that agencies could follow to collect and store documents that support electronic invoices.

Addressing Electronic Invoices that Fail Voucher Build

SECTION OVERVIEW AND POLICIES

This section provides guidance to agencies regarding identifying and addressing electronic invoices that fail in the Voucher Build process.

Process and Transaction Preparation:

Once a vendor submits an electronic invoice to the eSettlements module and the invoice passes validations within the module, it reaches the Voucher Build process. Agencies should refer to Section 4.E – Electronic Invoicing Process of this Chapter, for more information about the electronic invoicing steps that lead up to the Voucher Build process.

Errors in the Voucher Build Process

The Voucher Build process creates vouchers in the Accounts Payable module from electronic invoices. However, in some instances, electronic invoices will experience errors in the Voucher Build process:

• Invoices that fail the pre-edit process within Voucher Build will not be built into vouchers.
  • Each day, agencies should review the report titled eSettlements Staging Report (report number NYEM0052) in the Statewide Financial System (SFS) to identify invoices that fail the pre-edit process. Users can view the report in the SFS at Main Menu ® Accounts Payable → Reports → Vouchers → eSettlements Staging Report.
• Invoices that pass the pre-edit process will be selected by the edit process within Voucher Build.
• Invoices that fail the edit process will be built into vouchers with an Entry Status of Recycle.
  • Each day, agencies should review the report titled AP Vouchers Not Built from eSettlements (report number NYAP0066) to identify invoices that fail the edit process. Users can view the report in the SFS at Main Menu ® Accounts Payable → Reports → Vouchers → Vouchers not Built from eSettlements.

Deleting Failed Invoices and Vouchers and Notifying Vendors

SFS will delete invoices that fail the pre-edit process on a regular basis. Agencies should delete vouchers in Recycle status when the vendor failed to submit a proper invoice.

When an invoice or voucher is deleted, agencies must notify the vendor and provide the vendor with guidance on subsequent action required to rectify the problem. For example, the agency should instruct the vendor to resubmit a proper invoice (including fields that must be corrected) or instruct the vendor not to resubmit an invoice because the moneys are not due and owing to the vendor.

Correcting Vouchers in Recycle Status

When a voucher is built in Recycle status and the vendor submitted a proper invoice, agencies should correct the errors and enter the voucher into its normal approval process. For example, assume the following:

1. An agency instructs a vendor to provide goods or services via a purchase order
2. The agency closes the purchase order in the SFS without contacting the vendor
3. The vendor submits an electronic invoice that references the closed purchase order
4. The vendor submitted a proper invoice
5. The proper Invoice Received Date was assigned to the voucher in eSettlements

This invoice will experience errors in the Voucher Build process. It is important that the agency correct the errors and enter the voucher into its normal approval process to preserve the proper Invoice Received Date.

Submitting Corrected Vouchers into Workflow

When an agency corrects the errors on a voucher, or an invoice successfully completes the Voucher Build process, the agency must enter an appropriate value into the Obligation Date field on the voucher. Once the voucher is successfully saved, the user must submit the voucher into workflow. Agencies should refer to Section 4.E – Identifying and Processing Vouchers of this Chapter, for more information about processing vouchers from electronic invoices that successfully complete the Voucher Build process. The diagram shown below depicts the process for vouchers that experience errors in the Voucher Build process.

Identifying and Processing Vouchers Created From Electronic Invoices

SECTION OVERVIEW AND POLICIES

This section provides guidance to agencies regarding identifying and processing vouchers created from electronic invoices.

Process and Transaction Preparation:

Electronic invoices that are successfully built into vouchers enter the Accounts Payable module in Postable status. Each field on the voucher will be populated automatically as follows:

• The voucher will inherit the fields populated on the electronic invoice. These fields include Supplier ID, Invoice Number, Invoice Total, and Invoice Date.
• The voucher will inherit the chartfield information from the purchase order it references; and
• The voucher will inherit the Location for the purchase order in eSettlements.

Agencies can identify these vouchers by viewing the Vouchers Ready for Approval Workflow report (Report ID NYAP3213) and identifying vouchers with a Voucher Origin field equal to “MPY”. Users can view the report in the Statewide Financial System at Main Menu → Reporting Tools → SFS OBIEE Reports → Accounts Payable → Voucher. The AP Processor should follow the policies and procedures of the Business Unit or Business Services Center, whichever is applicable, prior to submitting the voucher into workflow. When an AP Processor submits a voucher into workflow, the Voucher Origin field will update as follows:

If a Business Services Center (BSC) user submits a voucher into workflow, the origin on the voucher will update to “BSC” so that the voucher will be routed through the BSC approval workflow.

If a Business Unit user who does not work for the BSC submits a voucher into workflow, the origin on the voucher will update to “ONL” so that the voucher will be routed through the Business Unit’s approval workflow.

The Voucher Source for vouchers created from electronic invoices will be either “XML” or “Self Service Invoice.” Agencies should refer to Section 8.A - Workflow in the Accounts Payable Module of this Chapter for more information about workflow in the Accounts Payable module.

Guide to Financial Operations

REV. 10/04/2023