Understanding eSettlements

This chapter provides an overview of eSettlements and discusses:

Setup and processing in the Buyer Direct model.
Setup and processing in the Business Service Provider model.
Role-based implementation.

eSettlements Overview

You implement your eSettlements application based on either the Buyer Direct model or the Business Service Provider model.

Buyer Direct Model

In this implementation, a single buying organization (buyer) controls the application. This model is based on a one-to-many relationship: one buyer provides an interface for many suppliers. A buyer deploys this model by requesting—or requiring—that its suppliers post invoices to the system. The eSettlements application functions as an invoice settlement solution in which electronic invoices—including supplier self-service invoices—combine with online dispute and resolution, workflow, email notifications, and electronic payments to enable real-time collaboration with suppliers. Suppliers can directly access invoice status and payment information using the internet—minimizing disruptive inquiries and lowering support costs—and the buyer can effectively manage all aspects of invoices, disputes, and payments. Advantages of this model include visibility of business processes, decentralization of approvals, extended payables visibility to selected suppliers for self-service electronic invoices, and collaboration in reconciliation and issue resolution. The entire payables process is streamlined, reducing administrative costs, minimizing disputes, and enabling faster settlement.

Business Service Provider Model

In this implementation, a consolidator controls the application. This model is based on a many-to-many relationship: a consolidator hosts the system and provides an interface between multiple suppliers and buyers. The consolidator acts as a trusted intermediary, collecting or aggregating invoices from multiple suppliers for multiple buyers. This structure eliminates the need for a point-to-point connection. The consolidator setup varies from market to market, depending on the needs of the buyers and suppliers in each industry the consolidator serves.

Setup and Processing in the Buyer Direct Model

In this implementation, the buyer controls the eSettlements application, which functions as a front end for the buyer's Payables application.

This section discusses:

Setting up the Buyer Direct model.
Processing in the Buyer Direct model.

Note. To implement either the Buyer Direct or the Business Service Provider model, you must first establish your control data by defining information in the PeopleSoft system's global, core, and additional application tables. The information that you define in these tables lays the foundation for your eSettlements-specific setup.

For a Buyer Direct implementation:

Specify the Buyer Direct model.
Create and name your own roles and permission lists.
Create at least one user in a Payables administrator role type.
Create a buyer template.
Enable Payables business units as eSettlements buyers.

If you enable Payables business units for use as eSettlements buyers, ensure that the business unit is set up for automatic voucher numbering. Autonumbering is used for self-service and XML invoices.
Enable Payables vendors as eSettlements suppliers.
Create a local supplier administrator, who then completes supplier registration by adding information specific to the selling entity. The supplier administrator can then create new user profiles for additional individuals within the organization.

Note. Creation of a supplier treasurer is required if the supplier subscribes to payment notifications.
Create an agreement.

This is a multistep process. The buyer administrator (or system administrator) initiates an agreement and offers it to the supplier. The supplier administrator reviews the terms and adds its organization's terms for the buyer before approving and returning the agreement to the buyer for completion.

Note. In the preceding steps, it is assumed that you have already implemented Payables.

Once you've set up the Buyer Direct model, processing follows these steps:

Enter vouchers into the system.
Enter self-service and XML invoices in eSettlements, and enter vouchers in Payables.
Review invoices in self-service pages.
Run the Payables Voucher Build Application Engine process (AP_VCHRBLD) to create vouchers.
Run the Matching Application Engine process (AP_MATCH).
Approve invoices and invoice lines, if required.
Run pay cycle to select payments.
Approve and create payments.

Note. If payment approval is required, first create and assign pay cycle security.

Setup and Processing in the Business Service Provider Model

When implemented as the Business Service Provider model, multiple buyers are involved, and all of the same features and functionality apply.

This section discusses:

Setting up the Business Service Provider model.
Processing in the Business Service Provider model.

For a Business Service Provider implementation:

Create a buyer bank account and a buyer template.
Create buyers (buying organizations) and assign their security and processing parameters.

Buyer registration populates several underlying PeopleSoft tables, creating a Payables, Purchasing, and General Ledger business unit for each buying entity, along with all necessary procurement processing options.
Create local buyer administrators.

The first user profile that you create for each new buying entity is its local buyer administrator. You also assign business unit security and data access to the buyer administrator, defining the buying entities to which the buyer administrator has access. Then, you define the processing options for the buyer administrator, including preferences such as the ability to record payments or override match exceptions.
Create local buyer users (this is done by each buying organization's buyer administrator).

The buyer administrator then completes the implementation process, updating and finalizing the registration for the buying entity by specifying matching preferences and creating additional users within the organization.
Create buyer pay cycles and assign associated security.
Create a selling entity (supplier) by defining subscription and system access, and then create a local supplier administrator for this new supplier.
Specify security by defining which suppliers the supplier administrator can access, and establish processing preferences for the supplier administrator role.
Register suppliers.

The supplier administrator completes supplier registration by adding information specific to the selling entity. The supplier administrator can create new user profiles for additional individuals within their organization. Creation of a supplier treasurer is required if the supplier subscribes to payment notifications.
Create agreements.

The buyer administrator initiates an agreement and offers it to the supplier. The supplier administrator reviews the terms and adds its organization's terms for the buyer before approving it and returning it to the buyer for completion.

Once you've set up a Business Service Provider model, processing follows these steps:

Create purchase orders, invoices, and receipts.
Review invoices in self-service pages.
Run the Payables Voucher Build process to create vouchers.
Run the Matching process.
Approve invoices and invoice lines, if required.
Run pay cycle to select payments.
Approve and create payments.

Role-Based Implementation

Because eSettlements is complex and configurable, several roles and steps are involved in the implementation of a new system.

This section provides an overview of role types and role names.

Role Types and Role Names

Whether you implement the Buyer Direct model or the Business Service Provider model, you must employ certain roles in the setup. You can attach eSettlements role names to a role type to control access and enable processing. Depending on your organization's needs, new users may be assigned to various buyer or supplier roles. The system provides predefined role types, and you can set up your own roles using the delivered data as a reference. After you define your roles, the system administrator must then map the roles to the delivered eSettlements role types. This step ensures that the system can identify how the new roles are used within eSettlements.

Note. When you create a system administrator, ensure that you complete all of the user preferences, including the default setID.

Establishment of various roles is required, depending on the email notification options and the invoice approval levels that you specify during buyer registration. Roles are also required to enable prepayments, urgent payments, payment cancellations, and line-level routing to operational users.

In the Business Service Provider model, if a buyer subscribes to payment processing by eSettlements, you must create a pay cycle for the new buyer. If the buyer subscribed to the self-service or to the automated pay cycle and also requires pay cycle approval, you also establish pay cycle security for the user that is responsible for approving payments.

Here are the delivered buyer role types and associated role name mappings that you can use as a reference when setting up roles:

Note. To use roles in eSettlements, you must map the roles that you set up to the appropriate delivered, predefined eSettlements role types.

Buyer Role Type	Buyer Role Name
Buyer Administrator	EM_BUYER_ADM
Buyer Accountant	EM_BUYER_ACCT
Buyer User	EM_BUYER_TREAS
	EM_APPROVER_1
	EM_APPROVER_2
	EM_APPROVER_3
	EM_BUYER_MTCH_MGR
	EM_BUYER_RECV
	EM_BUYER_SUPV

Here are the available supplier role types and associated role names:

Supplier Role Type	Supplier Role Name
Supplier Administrator	EM_SELLER_ADM
Supplier User	EM_SELLER_AR
	EM_SELLER_CM
	EM_SELLER_CSP
	EM_SELLER_TREAS

In the Business Service Provider model there are also two host administrator role types assigned by the consolidator: host functional administrator (EM_HOST_ADM_FUNC), and host technical administrator (EM_HOST_ADM_TECH).

In the Buyer Direct model, you set up a payables administrator role and map it to the system administrator role type.

Note. The host administrator must set up at least one buying entity for each buyer (business unit), and one selling entity for each supplier.

Once the initial setup is complete, the local buyer administrator and local supplier administrator can create additional users to suit their particular organization's needs.