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SCHEDULE 2: PURCHASE-TO-PAY (P2P) REQUIREMENTS

1.Introduction

The Scottish Government’s eCommerce Shared Service brings together all the steps involved in doing business with the public sector in Scotland. It promotes improved capability across public procurement in Scotland, enables business to be conducted more simply, consistently and effectively and it plays a key strategic role in delivering and sustaining procurement benefits and best practices. The use of technology enables procurement processes to be streamlined and standardised, which supports the delivery of more effective contracts.

The eCommerce Shared Service delivers Purchase-to-Pay (P2P) capability through the following solutions:

  • PECOS P2P
  • Catalogue Content Management (CCM)
  • eInvoicing

Bidders should be aware that not all Scottish public sector bodies use thesesystems and that there is a variety of different P2P solutions in place. However, for the purpose of this ITT, bidders will only be required to demonstrate their ability to support the solutions mentioned above.

Further information regarding the eCommerce Shared Service and in particular the solutions mentioned above can be found at:

<NOTE TO BUYERS – PLEASE SELECT THE MOST APPROPRIATE REQUIREMENT FROM THE OPTIONS BELOW. There must be an option in the ITT for Content, PO Transmission and Invoice method. Please note, for some Frameworks/contracts there may be a requirement to provide both an eCatalogue and an Punch-Out Site to accommodate different public sector bodies requirement. For all OJEU Frameworks/Contract eInvoicing MUST be selected as the preferred invoice method>

2.Content Options

PECOS (and most other P2P solutions) support the following options for capturing and displaying products and services.

2.1eCatalogue

An electronic Catalogue is typically a spread sheet that contains specific information about products or services including product descriptions, product codes, pricing, images, units of measure, UNSPSC codes, contract reference number as well as other relevant details relating to warranties, environmental credentials etc.

Through the use of eCatalogues, public bodies can ensure that only contracted products/services are displayed to end users, increasing compliance to contracts, reducing error rates on purchase orders (POs) and therefore maximising the opportunity to match invoices first time which in turn ensures that suppliers are paid either on time or quicker (if appropriate).

Instruction for Bidders:

Bidders should complete the attached eCatalogue template, ensuring that the mandatory columns contain the relevant information.The eCatalogue template is provided at Appendix XX. [u1]

2.2Punch-Out Site

A Punch-Out site is a supplier specificonline transaction website which can be configured to provide a micro-site that displays items that are specific to the Framework/Contract.

An end-user will access the Punch-Out site directly from PECOS (or other P2P solutions that have the capability) and create a shopping basket which can then be returned to PECOS to complete the transaction.

Punch out is preferable where:

  • There is a significantvolume of products provided;
  • The products have configurable specifications, such as computers or furniture;
  • The products have frequent price changes; or
  • Where the content to be provided is of a specialist nature.

It will be the supplier’s responsibilityto create and maintain the Punch-Out site and arrangements will be put in place to ensure that the products/services displayed are regularly checked for accuracy.

The supplier willbe required to maintain price and product data in accordance with that agreed in the Framework.

There is a one-off charge to configure the Punch-Out connection from PECOS but this will enable multiple PECOS user organisations to access the connection.

Bidders should note that other P2P solutions may also support Punch-out and any costs associated will be communicated to the successful bidder by the appropriate Scottish public body.

Instruction for Bidders:

Bidders should provide the URL to access the Punch-Out site to be used for this Framework/Contract.

2.3Non-Catalogue

If the Framework/Contract does not lend itself to either a catalogue or Punch-Out site, purchase orders will be raised as a non-catalogue or free text order.

To ensure that PO’s provide an accurate description of the requirement and contain accurate pricing the following information will have to be made available to end-users when creating non-catalogue PO:

  • The description of the product or service being requested;
  • The Item number/code of the product or service being requested;
  • The price of the products or services being requested; and
  • The contract reference number of the products or services
  • How changes to the order will be accommodated.

Instructionfor Bidders:

Bidders should detail how they will ensure that the information required above is communicated to end-users.

3.Purchase Order (PO) Transmission Options

PECOS supports the following options for transmitting approved PO’s to suppliers.

3.1cXML

PECOScan issue a cXML PO directly to a supplier's back office system. This allows the order to be automatically captured by the supplier’s system, thereby removing the need to manually enter the order and reducing potential errors.

There is a one-off charge to configure cXML ordering from PECOS but this will enable multiple PECOS user organisations to use the connection.

Bidders should note that other P2Psolutions may also support cXML ordering and any costs associated will be communicated to the successful bidderby the relevant Scottish public sector body.

Instruction for Bidders:

Bidders should confirm if they can support this type of order transmission.

3.2PDF email

PECOS will send the supplier an email to a predetermined address with a PDF attachment.

Instruction for Bidders:

Bidders should confirm if they can support this type of order transmission.

4.Invoice Options

There are a number of different payment options available but bidders should note that for this Framework/Contract, eInvoicing is the preferred option. This will ensure compliance with the EU eInvoicing Directive which comes into force on 27 November 2018.

4.1eInvoicing

The Scottish Government is enabling eInvoicing capability across the Scottish public sector through PECOS P2P. To support this, suppliers will be required to submit their invoices and credit notes in a machine readable data format such as PDF or cXML.

Submitted invoices must be HMRC compliant and must include the following data:

  • Purchase Order Number;
  • Product or service item number;
  • Line item detail such as price, unit of measure and description;
  • The invoice period;
  • Seller information;
  • Buyer information;
  • Payee information;
  • Seller’s tax representative information;
  • Delivery details;
  • Payment instructions;
  • Allowance or charge information;
  • Invoice totals;
  • VAT breakdown

It is critical that the invoice issued by the supplier matches the information contained within the PO to ensure that the invoice data above is correctly mapped to the invoice processing environment.

There are no costs to suppliers to issue an invoice or credit note to the Scottish Government’s eInvoicing solution.

Bidders should note other P2P/finance solutions may also accept eInvoices and any costs associated will be communicated to the successful bidder by the relevant Scottish public sector body.

Instructions for Bidders:

Bidders should confirm that they can deliver invoices and credit notes in a machine readable format such as PDF or cXML.

Bidders should confirm that their invoices contain the data detailed above.

Bidders should provide a copy of their invoice format.

If bidders are unable to support eInvoicing, the following payment options should be considered:

4.2Self-Billing / Electronic Receipt Settlement

PECOS supports the ability for the Goods Received Note (GRN) to act as the instruction to pay the supplier which removes the need for the supplier to issue an invoice.

4.3Embedded Government Procurement Card (GPC)

PECOS enables a Government Procurement Card (GPC) to be embedded against a supplier to allow all orders to be charged against it. The supplier receives payment for these orders from VISA/Mastercard therefore removing the need to raise invoices for each order. Suppliers will normally get paid within 3-4 working days from the date of dispatch. However, the GPC does charge suppliers a Merchant Fee for each order raised and this fee ranges from 2.5-5%.

4.4Consolidated Electronic Invoice

Supplier submits a single invoice covering multiple purchase orders in an electronic file for an agreed period of time. The format of the electronic file will have to be agreed between the supplier and the relevant Scottish public body.

4.5Paper Invoice

Supplier issues a paper invoice for each order fulfilled.

Instruction for Bidders:

Bidders should indicate which invoice option they can support and which option would be the preferred method of invoicing.

5.Framework/Contract Implementation

Upon contract award, it is critical that the agreed P2P process is implemented in a timely and robust manner to ensure that the Framework/Contract is successfully mobilised in time for the commencement date.

There are specific timescales that need to be considered when moving into the contract mobilisation period. For a new supplier, it is recommended that a 10 week mobilisation period is planned to configure, test and implement the agreed content, PO transmission and invoicing options. For an incumbent supplier,who has established content, PO transmission and invoice options already enabled, it is recommended that a 6 week mobilisation period is planned.

The following key activities should be taken considered when implementing a new Framework/Contract:

  • Define, document and communicate to public bodies the agreed P2P process to be used by end users when procuring from the Framework/Contract;
  • Configure and test the Punch-Out connection and/or cXML PO transmission (if required) from PECOS and other P2P systems in use;
  • Upload, validate and approve the eCatalogue in CCM to ensure that it is fit for purpose;
  • Publish and test the eCatalogue in PECOS and other P2P systems;
  • Agree timescales for public bodies carry out end-to-end testing in PECOS and other P2P systems;
  • Agree timescales for making any necessary changes from the testing period.

Instructions for Bidders:

Bidders should provide an implementation plan detailing how long it will take to complete all of the key activities outlined above.

NOTE TO BUYERS - BUYERS TO DETAIL THE METHODS THEY HAVE CHOSEN ABOVE THAT THE BIDDER SHOULD PROVIDE AN IMPLEMENTATION PLAN FOR>

R2-41-A24/07/2017

[u1]Buyer to insert relevant Appendix number and attach document to ITT.