# Presentation: 161818

## Austin Financial Center Agency ForumJuly 16, 2008

**Austin Financial Center ****Agency Forum**July 16, 2008

***Financial Management Service***

## Agenda

- Introduction
- The Internet Payment Platform
- Benefits to Agencies
- IPP Considerations
- IPP Team
- IPP Screen Shots
- Next Steps

**Notes:**
The agenda for today’s meeting is to introduce the Internet Payment Platform. 
Give you an overview of the features and function and the benefits of  using the IPP.
I will demo the Internet Payment Platform with a few screen shots and 
Provide our contact information to schedule a follow up meeting.

## Introduction

**Brett Smith**
- Financial Management Service
- Program Manager
**Teresa Ricoy**
- Federal Reserve Bank of Boston
- Business Analyst

**Notes:**
My name is Teresa Ricoy, responsible for developing and executing agency outreach and communication plans.  
In collaboration w/ FMS, we establish and maintain contacts with agencies, make presentations and conduct face-to-face meetings.

## Business Problem

- The Order-to-Pay is Paper, People, and Time-Intensive
- Expensive to process paper
- It can take agencies weeks or months to process a vendor payment
- Agencies (and FMS) field many phone and e-mail inquiries from payees asking for more payment-related information yet with fewer resources

**Notes:**
Currently some agencies take months to process a vendor payment due to the amount of paper that has to be passed and approved between offices. 
Agency staff receive phone calls from suppliers during this process requesting invoice payment status
FMS also handles question from suppliers about payment return, cancelled or reduce  payment TOPS( Treasury Offset system) these inquiries takes valuable time away from key business responsibilities. As a result this process is paper, people and time intensive.  

## Internet Payment Platform

- Is a Web-based payment information service made available to all Federal agencies and their suppliers by the Treasury’s Financial Management Service (FMS)
- Is a free service for both government agencies and their suppliers
- Centralizes purchase order, invoice, and payment information in the Order-to-Pay process for agencies and their suppliers
- A modular platform, not “One Size Fits All”
- Is a means to aggregate suppliers across multiple Government agencies– deploy a vendor once to transact with all participating agencies

**Notes:**
The IPP addresses these challenges by automating manual processes and centralizing information through a Web-based application accessible to authorized users
What is IPP?
IPP is a payment information service provided by Treasury Financial Management System (FMS). 
IPP centralizes all the transactions related to the Order-to-pay process: From a purchase order to the payment information.
IPP services are free to all the federal agencies and their suppliers 
IPP aggregates supplier is one centralize protal. That means once a supplier is enrolled in IPP community it can transact with all the agencies participating in IPP. 

## Internet Payment Payment is NOT

- A replacement for an Agency ERP system
- A replacement for an Agency Procurement or Accounts Payable (A/P) platform
- The system of record for a business transaction
- A new payment or certification process

## How Does the IPP Benefit Agencies? 

- The IPP is an opportunity for agencies to streamline
- processes and eliminate time consuming inefficiencies

**Streamlined**** ****Processes**

**Reduction in Paper-Based Expenses**

**Improved Vendor Relations**

**Time-Saving Systems**

**Primary Agency Benefits**

- Improves purchase order and invoice flows through electronic automation

- Provides a new channel for electronic presentment of POs and invoices, reducing expenses associated with paper and postage

- Improves supplier / merchant  relations by reducing late payments and providing for discount opportunities

- Minimizes agency time spent responding to payment-related email and phone inquiries through vendor self-help over the Web

**Notes:**
IPP Provides total transparency in the order-to-pay process by providing PO, Invoices and Payment information electronically, decreasing the period it takes to make payment and reducing the costs of postage and manual paper processing
IPP Improves suppliers relationship by reducing late payment and the increasing discounts opportunities 
IPP will decreases the number of supplier calls allowing agencies to focus on more strategic business functions

## IPP

- _[Workflow](slide16.xml)_

**Agency ERP**
**Purchasing**

- Purchase Orders (w/updates)

- Vendor
- (Ordering
- System)

- Vendor
- (Invoicing System)

- Vendor
- (A/R System)

- Invoices, Acks & ASNs

**Agency ERP**
**A/P**

- Invoices

- Invoice Status

**Treasury Regional Operations**

- Payment Request

- Payment Information

**Vendor’s Bank**

- Payment Information

- POs

- Account Reconciliation

- ACH

- 1

- 2

- 3

- 4

- 5

- 6

- 7

- 8

- 9

**Workflow**

**IPP**

**Web Display**

*IPP Information Flow Overview*

**  ****ACK is purchase order acknowledgement by Supplier**
**  ****ASN is an advanced shipping notice **

*****

*****

**Notes:**
The original PO comes from your ERP system to display in the IPP so that you suppliers can see it electronically.
Your suppliers can download the PO to their systems as we can see in number two. 
Once your suppliers views your PO they can send you an Acknowledgement that they received your PO. They can also send you an advance shipping notice. 
Once the PO is processed you supplier can “flip” a PO to an invoice by just clicking a button and the only data entry they need to do is enter the invoice number, which come from their system.
Yours suppliers can easily flip the PO into an invoice. If workflow is done in IPP, then the invoice remains in IPP till all approvals are done. If not, then the invoice will be downloaded to Agency's ERP system.
The agency can send Invoice status to the IPP enabling suppliers to obtain more information about the invoice status. (Pending approval, Reject, Approved to Pay, Scheduled to Pay, Paid)
Once the Invoice is approved, either through IPP or your own system, the request for payment is now in processed. 
After the request for payment is made through the Treasury, and payment is processed by them, they will send a copy of the payment information to the IPP. This of course is an opportunity for your suppliers to know what exactly they will receive in their bank account. Your Suppliers will out if they payment has been cancelled, reduces or offset. Offset detail information will be available only to the suppliers not to the agency. 
The payment information will be available for Display and download in IPP ( to the Suppliers A/R system). 
The payment is made to the suppliers bank account.  At the end of the process, number 10, the suppliers A/R office can reconcile what they received tvs what they billed. 

## Implementation Costs

- IPP is provided as a free service by Treasury’s Financial Management Service (FMS)
- There are no licensing fees associated to implementation, transactions or support, and there is no requirement to purchase IPP client software
- Agency resources are required for implementation and ongoing administrative processes
- IT and subject matter experts
- Communication and Security software/hardware

**Notes:**
Connect:Direct (C:D) or SecureTransport (ST) software
Firewall

High Level Implementation Project Plan:
Phase I – Pre-kickoff outreach 
Phase II – Kickoff meeting  (Today)
Phase III – Discovery and planning (8/4/08 – 10/6/08)
Meet regularly
Review related tasks
Phase IV – Implementation (9/2/08 – 3/23/09)
Meet regularly
Review related tasks
Training
Phase V – Go-live with initial bureaus (3/24/09 – 3/27/09)
Phase VI – Roll additional bureaus in as SAP progresses

Review Microsoft Project plan and discuss various  project tasks

Agency resources are needed through the IPP project, such as you Program team, executive sponsor etc. all this resources are needed to successfully complete the IPP project. 
		Agency provides
Executive Sponsor
Project Manager (very active role)
Various team members
IT resources (for file interfaces, flagging of IPP suppliers, and creation of IPP separate PIF schedule)
Subject matter experts for
Procurement resources
Communications resources
Security resources
Management resources
Please refer to APG pp. 28-31

## IPP Considerations

- IPP is implemented in a modular fashion
- Leverage existing Agency investments in financial systems
- Opportunity for incremental transformation
- Select services appropriate to an Agency’s needs:
- Electronic purchase order delivery to suppliers
- Electronic invoice submission from suppliers
- Invoice routing for on-line approval (Workflow)
- Payment and adjustment reporting
- Email notification features
- Agency implementation takes approx. 5 – 7 months

**Notes:**
1. The IPP’s modular design allows agencies to select and implement the specific services most appropriate to their business needs, with the option of adding additional features in the future.
2.  Features Include:
Enabling electronic purchase order delivery  to registered suppliers 
Receiving electronic invoices from suppliers 
Routing invoices automatically for expedited online approvals 
Capitalizing on discount opportunities offered by suppliers 
Viewing reports on Treasury payments 
Using a centralized directory to facilitate supplier enrollment– suppliers enrolled by one agency can transact with all IPP agencies 
Selecting from a wealth of email notification options

## IPP Considerations (Cont’d)

- Interfaces with all major financial systems via file exchange (Oracle, SAP, Momentum, etc.)
- Downstream from Procurement process
- IPP accepts and delivers only approved Purchase Orders
- Relies on ERP interface to Central Contractor Registration (CCR)
- IPP does not re-validate suppliers

**Notes:**
Interfaces with major financial systems such as oracle, sap momentum because IPP transacts 
		 File-based system interaction
2 Downstream procurement process 
IPP accepts and delivers only approved Purchase Orders
Does not interact with CCR to avoid supplier confusion
3. Minimal changes to agencies
		Certification in SPS

##  IPP Considerations (Cont’d)

- Minimizes change to agencies
- Same EFT vendor file, Certification in SPS, same RFC’s (Austin, Kansas City, Philadelphia, San Francisco)
- Provides one system for both Supplier and Agency
- IPP in production as of November 2007 for TDO and NTDO agencies (BEP and GPO)
- Working with new agencies for 2008-09 implementations
- SBA, DOI and BPD

## Connectivity with IPP

- Treasury Web Application Infrastructure (TWAI):
- Is shared user environment
- Provides hosting environment for IPP application
- Provides technical operations
- Provides data security
- Provides users provisioning
- Username and Password for login

**Notes:**
Communication options with TWAI are:
SecureTransport (ST) by Tumbleweed
Connect:Direct (C:D) by Sterling Commerce

Shared user environment means other FMS programs are sharing the TWAI environment (example: pay.gov, IPP, IPAC, GWA)

## IPP Operational Support

- Agency and Supplier support available through IPP Customer Support
- M-F (except Bank holidays) 8:00 am to 6:00 pm, EST
- FRBB dedicated team
- Technical operations are provided by TWAI
- System is available 24/7 (except maintenance window)
- Supported by a secondary site

**Notes:**
Maintenance windows: 12am to 6:00am on some Sundays. Agencies will be notified through the IPP application. 

## Payment Advice Internet Delivery (PAID) system migration to IPP is scheduled for Oct. 2008

Seamless payment notification to existing PAID vendors
Opportunity for PAID vendors to transact with IPP agencies to send and receive electronic invoices/Pos
Approx. 27000+ additional vendors

- Seamless payment notification to existing PAID vendors
- Opportunity for PAID vendors to transact with IPP agencies to send and receive electronic invoices/Pos
- Approx. 27000+ additional vendors

*PAID Migration*

**Notes:**
PAID is a system developed by the U.S. Treasury's FMS to provide participating Federal agencies a method of making remittance information available to their vendors through the Internet.

## Next Steps

- To start your agency IPP implementation process:
- Contact us to obtain additional information
- Sign an Agency Participation Agreement
- Name an Executive Sponsor and a Project Manager
- Initiate project!
- For more information visit _www.ipp.gov_

## Disburser
Collector

- Collector

*IPP Screen* *Shots*

## Agency: Welcome Page

*Agency: Welcome Page*

- © 2007 Federal Reserve Bank of Boston.  This document contains confidential information (including trade secrets) of the Federal Reserve Bank of Boston ("FRBB") its licensors.  A federal government agency may not disclose this document outside of that agency without the written permission of the FRBB.

## Agency: Purchase Order 

- © 2007 Federal Reserve Bank of Boston.  This document contains confidential information (including trade secrets) of the Federal Reserve Bank of Boston ("FRBB") its licensors.  A federal government agency may not disclose this document outside of that agency without the written permission of the FRBB.

**Notes:**
  Detailed information on the PO in the supplier perspectives
Here will have the PO presentment in the agency view. The data elements on the right side of the screen...PO date, PO #, Contact information etc. The agency decides through the implementation process what data to provide to their suppliers. The last part of the PO presenation is the line element: detail information 

## System Focus and Details – Invoice

- This document contains confidential information (including trade secrets) of the Federal Reserve Bank of Boston ("FRBB") and its licensors.
-  A federal government agency may not disclose this document outside of that agency without the written permission of the FRBB.

**Notes:**
Buttons of workflow: This options will be available if your agency chooses to do workflow component of IPP. 

## Supplier: Welcome Page

*Supplier: Welcome Page*

**IPP Provides Suppliers**
**With a Central Portal**
**For Viewing All Activity**

- © 2007 Federal Reserve Bank of Boston.  This document contains confidential information (including trade secrets) of the Federal Reserve Bank of Boston ("FRBB") its licensors.  A federal government agency may not disclose this document outside of that agency without the written permission of the FRBB.

## System Focus and Details – PO

## System Focus and Details – PO flip in progress

- This document contains confidential information (including trade secrets) of the Federal Reserve Bank of Boston ("FRBB") and its licensors.
-  A federal government agency may not disclose this document outside of that agency without the written permission of the FRBB.

## System Focus and Details   

- This document contains confidential information (including trade secrets) of the Federal Reserve Bank of Boston ("FRBB") and its licensors.
-  A federal government agency may not disclose this document outside of that agency without the written permission of the FRBB.

## Payment Example - Collector 

- This document contains confidential information (including trade secrets) of the Federal Reserve Bank of Boston ("FRBB") and its licensors.
-  A federal government agency may not disclose this document outside of that agency without the written permission of the FRBB.

## Thank You

- Please forward questions and comments to:
**Brett Smith**,** **FMS Program Manager
- (202) 874-6666
- _[Brett.Smith@fms.treas.gov](mailto:Brett.Smith@fms.treas.gov)_
**Teresa Ricoy**, FRBB Business Analyst-Outreach
- (617) 973-3027
- _[Maria.t.ricoy@bos.frb.org](mailto:Maria.t.ricoy@bos.frb.org)_