ERP and Tracking Aggregate Spending for the Pharmaceutical Industry

Pharmaceutical manufacturers that are looking to implement a new ERP system will invariably ask about options for meeting requirements of the Sunshine Act, which was enacted to protect consumers by ensuring transparency in the reporting of financial relationships between pharmaceutical companies and health care providers (HCPs). While pharmaceutical companies generally purchase a software system specifically designed to track their aggregate spending to HCPs, the ERP system generates much of the information that is fed into the aggregate spend system.

Typically, money flows from pharmaceutical manufacturers to healthcare providers in three forms that are generally handled in three very distinct manners:

  1. AP invoices directly to HCPs

Vendors that are HCPs are defined as such in the ERP system. Any expenses that are booked in the ERP system directly to HCP vendors are pushed to the aggregate spend system via an integration. Typically, a relatively small number of HCPs become direct vendors in the ERP system. The process of setting up new vendors is generally a highly controlled process that lends itself to accurately defining and identifying an HCP.

  1. Employee expense reimbursement

Employees of the pharmaceutical company meet with HCPs and incur expenses that need to be reimbursed to them by the company. Assuming the company has an expense reimbursement system (such as Concur, for example), the expense reimbursement software generally just feeds the core accounting (general ledger) data to the ERP system, and sends the HCP spend information directly to the aggregate spend software. It is therefore necessary to have the HCPs defined in the expense reimbursement system, but the ERP system is not involved in this process.

  1. AP invoices to 3rd party vendors that benefit HCPs

While it is possible to capture this data in the ERP system (on a custom field linked to the PO or invoice) and push it to the aggregate spend system, there are some complicating factors that lead many companies to opt to manually enter these transactions into the aggregate spend software or else upload vendor documents directly to the aggregate spend software in addition to recording the invoices in ERP:

3.1  Timing

At the time that a PO or invoice is entered, do we necessarily know which HCPs will benefit from the spend? For example, speaker bureau invoices often arrive in advance of the list of attendees (HCPs)

3.2  Accuracy

HCPs that benefit from expenses incurred with 3rd parties can be very large in quantity. Ensuring that the correct HCP is selected and linked to an expense can be difficult, especially when many health care providers may have similar names (or even the same names). In such cases, AP clerks that have no direct knowledge of the circumstances surrounding the expense could have a difficult time selecting the correct HCP. Aggregate spend software systems typically have matching algorithms to accurately identify HCPs.

 

Why Tridea Partners?

Tridea Partners helps companies unlock the value of their business applications. By engaging Tridea Partners, you gain a partner that is committed to your business success. We work with you to automate your company’s unique business processes, integrate existing systems and people, assist with necessary business practice adjustments, and ensure the solution will scale with your company’s growth.

Personnel: Tridea Partners focuses on hiring consultants with deep experience in the Life Sciences industry and has gained extensive experience through the completion of over 100 ERP implementations in the industry.

Solutions: Tridea Partners has developed custom software solutions that enhance and extend Microsoft Dynamics ERP to support the needs of the Life Sciences industry, specifically project accounting, quality assurance and order entry.

Implementation Methodology: Tridea Partners uses an implementation methodology that addresses the challenges within the Life Sciences industry. This implementation methodology focuses around a detailed understanding of key business processes, segregation of duties, security and audit trails, collaborative configuration, sign-off and finally testing and system validation.

To learn more about how Tridea Partners can help you get the most out of your Microsoft solution, visit our website or contact us at info@trideapartners.com

Five Ways to Make Your Supply Chain More Dynamic: Part 5

Five Ways to Make Your Supply Chain More Dynamic Part 5: Embrace Change

After efficiency, adaptability is the most important thing a well-managed supply chain can offer. And fluctuating economic demands—as well as fickle consumer and business buyers—mean today’s small and mid-sized businesses must move beyond yesterday’s notion of what’s adaptable. Today, we must be prepared to change course daily, not quarterly, moving from this vendor to that vendor; forming mergers and partnerships; and scaling up and down as your suppliers, your market and your margins demand.

Unlike some traditional GP systems, Microsoft Dynamics adapts to how your supply chain works and changes, so it can easily support the addition of new warehouses, the acquisition of new companies, and other changes to the footprint of your business. And with powerful predictive analysis tools, it allows you to gauge the effect these changes will have on your entire business.

There’s nothing more frustrating than when your existing systems cannot handle your growth. Or discovering your systems can’t adapt to the change that’s constant in every business. Microsoft Dynamics GP can handle hundreds of thousands of transactions, so you won’t hit a ceiling in your capacity as your business grows. Speaking of growth, because Microsoft Dynamics GP systems automate core supply chain processes, you can help your team be more productive, so you don’t always have to add costly headcount as your volume increases.

This five-part blog series was designed to identify five strategies small and mid-sized businesses can embrace to make their supply chain simpler, smarter and more profitable. Make a decision today to improve your business every day and see how a business solution from Tridea can make your supply chain more dynamic.

 

5 Ways to Make Your Supply Chain More Dynamic

 

 

 

 

 

 

For more information or to get started evaluating a solution that’s right for you, contact Tridea Partners today!

Contact Tridea Partners

 

Five Ways to Make Your Supply Chain More Dynamic: Part 4

Five Ways to Make Your Supply Chain More Dynamic Part 4: Avoid Disruption

 

Natural disasters. Political unrest. Economic collapses. Even the occasional economic surge. The volatility of our world is an everyday reality for every business, regardless of where it is. Even if your customers and facilities are situated on the same plot of land, your supply chain is undoubtedly global—you’ve got goods and raw materials coming from all over the world. As a result, it’s critical that you can identify and avoid disruptions.

Great plans rely on great data, and that data needs to come from across your business. The predictive analysis tools in Microsoft Dynamics GP allow you to look ahead, paint accurate “what if” pictures, and get a clear sense of how major changes—or even slight fluctuations—could impact your entire business.

And because Microsoft Dynamics GP brings together financial and supply chain management, you can see how changes to your supply chain affect everything from open orders to delivery times, inventory and cash flow, allowing you to predict and contain the impact a supply chain disruption has on your business and your customers.

Armed with this information, you’ll be prepared for almost anything. You’ll know your options. And you’ll know how to craft a contingency plan to help avoid disruption to your business.

Your supply chain is flexible, but it doesn’t have to be fragile. Microsoft Dynamics GP gives you the tools to prepare for and protect your SCM processes—from the ramifications of global events to the deluge of big data. This five-part blog series was designed to pinpoint those interruptions and opportunities, and to demonstrate how Microsoft Dynamics GP makes supply chain management simpler, smarter and more profitable.

 

5 Ways to Make Your Supply Chain More Dynamic

 

 

 

 

 

 

For more information or to get started evaluating a solution that’s right for you, contact Tridea Partners today!

Contact Tridea Partners

 

Microsoft Dynamics GP 2017 Updates

Dynamics GP 2017 Year End Changes will include the following –

  1. No W2 or W3 form changes this year
  2. There are EFW2 changes
  3. The year-end update will have some product quality fixes delivered
  4. Affordable Care Act (ACA) is still alive and well – the required form changes will be part of the year end update
  5. Depreciation changes mostly around luxury auto depreciation

GP 2013

Remember if you are on any version of Dynamics GP 2013, mainstream support will end on April 10, 2018, after which time you will no longer receive tax and year end updates, nor will you receive any further product updates to GP 2013. Time to upgrade.

All Versions

All year-end updates are scheduled to be released the week of November 20, 2017. To install the year end update, you will need to be on one of the following versions:

  • GP 2013 – Must be on version 12.0.2104 or later
  • GP 2015 – Must be on version 14.00.0983 or later
  • GP 2016 – Any version
  • GP 2018 – Any version

Microsoft does require you to install the year end update this year, as if you do not, your ACA forms will be wrong and your EFW2, electronic files will fail, along with fixed asset depreciation being incorrect.

If you do not use any of these areas, you may be able to skimp by without applying the update.

For more information contact us today!

Five Ways to Make Your Supply Chain More Dynamic: Part 3

Five Ways to Make Your Supply Chain More Dynamic Part 3: Share Ideas, Not Just Information

 

For more than a decade now, collaboration has been the name of the game in supply chain management. Companies have focused on building the systems to collect and share vital supply chain information across their organizations and with their vendors and suppliers.

Today, successful companies need to evolve from simply sharing data to sharing ideas, creating a platform for communicating with every link in the supply chain. Businesses and their supply chain partners need the means to examine the information they have; brainstorm ideas; identify trends, issues and opportunities; and share insight from every perspective.

How? Well, first your have to make sure everyone’s getting the best, real-time look into what’s happening and that you have the right tools to predict what might happen tomorrow.

Microsoft Dynamics GP provides real-time access to all the data and metrics across your supply chain, plus with powerful built-in predictive analysis tools, you can identify trends, predict opportunities and make accurate cost and revenue projections. And by connecting your supply chain, financial management, sales and marketing functions with Microsoft Dynamics GP and Microsoft Dynamics CRM, you get you get an end-to-end picture of your entire business.

Once you’re armed with all the data, you need the technology to connect and share ideas with and across your supply chain. Microsoft Dynamics GP interoperates with Microsoft Office, Microsoft SharePoint, and Microsoft Lync collaboration tools, so you can easily, instantly and securely share information inside and outside your walls. You can also collaboratively analyze data, share ideas, and improve how each part of your supply chain fits efficiently into place.

With the right data and a platform for collaboration, you’ll change each link of your supply chain into an active business partner that can contribute to the success of your company. Next time, we’ll explore how Microsoft Dynamics GP can help track and control the true costs that define your profitability.

5 Ways to Make Your Supply Chain More Dynamic

 

 

 

 

 

 

For more information or to get started evaluating a solution that’s right for you, contact Tridea Partners today!

Contact Tridea Partners