Guideline on Common Financial Management Business Process 3.1 - Manage Procure to Payment

This guideline defines Manage Procure to Payment, which begins with the identification of procurement need and ends with a finalized payment issued by the Receiver General for expenditures that involve operational or capital procurement using a purchase order or other type of contract.
Date modified: 2012-01-10
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Long description for image: Figure 3. Manage Procure to Payment - Level 2 Process Flow

The figure is a process flow diagram comprising subprocesses, connectors, inputs/outputs and decisions. Some subprocesses are grouped into subprocess groups.

This diagram depicts the Level 2 process flow for Business Process 3.1 – Manage Procure to Payment. It starts with a connector from Business Process 1.1 – Manage Planning and Budgeting, which provides input in the form of an approved budget for the Manage Requirements Subprocess Group, beginning with Subprocess 3.1.1 – Determine Requirements.

The flow continues to Subprocess 3.1.2 – Determine/Exercise Expenditure Initiation Authority, which is performed concurrently with the Control Commitments Subprocess Group, comprising Subprocess 3.1.3 – Verify Unencumbered Balance (section 32 of the FAA) and Subprocess 3.1.4 – Manage Commitments (section 32 of the FAA). Completion of the three subprocesses results in the output of a requisition for goods/services, used in the Manage Contracts Subprocess Group. The Manage Contracts Subprocess Group comprises Subprocess 3.1.5 – Manage Contracts (transaction authority) and the output of an approved contract.

The flow advances to the Administer Contracts and Deliverables Subprocess Group, where input in the form of deliverables is used in Subprocess 3.1.6 – Administer Contracts and Deliverables (section 34 of the FAA). The flow then continues to the decision titled “Assets?”. The YES flow for this decision goes to a connector for one of the following:

  • Business Process 4.1 – Manage Other Capital Assets;
  • Business Process 4.2 – Manage Real Property; or
  • Business Process 4.3 – Manage Inventories.

The YES flow then advances with the NO flow to the Manage Payables Subprocess Group where:

  • Input in the form of an invoice is used as part of the Subprocess 3.1.7 – Manage Payables;
  • Certification pursuant to section 34 of the FAA is exercised; and
  • The output of certification is the output of the subprocess group.

The flow continues to the Manage Payments subprocess group, where input in the form of a payment requisition is used in Subprocess 3.1.8 – Perform Payment Authority (section 33 of the FAA). The flow then proceeds to Subprocess 3.1.9 – Issue Payment, which is performed by the Receiver General and results in the output of a return payment file.

The flow advances to the decision titled “Quality assurance performed?”. The NO flow for this decision leads to the connector for Business Process 8.1 – Manage Post-Payment Verification before continuing with the YES flow to Business Process 8.2 – Manage Financial Close, where Business Process 3.1 – Manage Procure to Payment ends.

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