accounts payable automation
DESCRIPTION
This presentation covers an overview of an Accounts Payable Automation Solution.TRANSCRIPT
Accounts Payable Automation
Why Invoice Automation Matters
Michael R. Thomas | AMS Imaging
AP Evolution Continues
• Accounts Payable is Strategic• Contract management• Financial reporting and analysis
• Do More with Less– Reduce Costs– Improve Efficiency– Eliminate Risk (Ensure Compliance)
Cost of processing an invoice
The Payables process
Self-Service
Invoice Distribution
Invoice Approval
Invoice Receipt
Invoice Verification
PaymentDelivery
Payment Approval
Payment Initiation
Payment Verification
Invoice Creation
PaymentReceipt
Invoice Delivery
Payment Check
BuyerSeller
2 $ – 5 $Print, Paper, Postage
Delay 5 days
6 $ – 10 $Invoice Input, Approval avg 7 days
2 % discount loss
2 $ – 10 $Processing
6 $ – 10 $Processing, Postage
4 $ – 10 $Manual Error Handling
In & Outbound Calls
20 $ – 40 $Manual Error HandlingIn & Outbound Calls Invoice data cleanup
So What is Invoice Automation?
InvoiceApprovalWorkflow
ERP
InvoiceMatching
Dispute Resolution
Notification
Single Pipe
Errordetecte
d
Invoice
Process-Readytm
Data
Improve Data
Quality
Detect Missing,
Incomplete,or Wrong Data
Data Capture
SeparationClassification
Extraction
ConfirmationNo Error
detected
Correction
XML/EDI
InvoiceApprovalWorkflow
ERP
InvoiceMatching
Dispute Resolution
Single Pipe
Process-Readytm
Data
ConfirmationNo Error
detected
Invoice
Improve Data
Quality
Detect Missing,
Incomplete,or Wrong Data
Data Capture
SeparationClassification
Extraction
Resend Invoice
XML/EDI
Data Capture?
Learn By Example Approach
| Transform 2012 - Capture Driven ProcessesSlide 9
Inv. Num
IN3456789
Inv. Date
29.Sept. 2010
PO Number
1st Sept. 2010
Paragliding SportsSky Is the Limit 279100FrieburgGermany
VAT ID: DE99776644 Bank Details: Volksbank FreiburgBank Code: 4522333 Account: 999888333
Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx------------------------------------------------------------------------------------------------------------------------------------------------------------Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx
Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxxXxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx
oooooooo
Invoice Number
IN3456789
Date 29th Sept. 2010
PO Number 1st Sept. 2010
Surf SportsWaverider Street 2879117 FrieburgGermany
VAT ID: DE123456789Bank Details: Sparkasse FreiburgBank Code: 564132157Account: 5454698/7
Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx------------------------------------------------------------------------------------------------------------------------------------------------------------Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx
Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx
Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx
Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx
Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx
Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx
oooooooo
•Remember the location of data
Slide 9 | Transform 2012 - Capture Driven Processes
Learning a New Supplier1st step: Enter the data, mark the document for learning, train it
Learning Confirmation2nd step: With 1 trained document we get 50% confidence, so train it again
Learning Done!3rd step: With 2 trained documents we get 85% confidence, no more training required
Reduced Data Entry Costs
Typical Reduction in Data Entry– 80% within 6 Weeks
– 90+% within 6 Months
Less Time Typing means more time for value-added tasks!
What about e-Invoicing?
Business Challenges of EDI
Do you recognize these business pains?
• You know the benefits of e-invoicing but cannot get your suppliers on board.
• Your IT staff has limited resources to roll out EDI.
• EDI is a very costly and complex solution.
• You receive EDI data and want to process and validate this data together with your invoices received by post and email.
Step 4: Integrate Electronic Invoices
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Suppliers Invoice volume
Paper/Credit Cards Paper/Fax Electr. Invoices EDI
10%
5%
15%
70%
2%
38%
30%
30%
Additional 15% of the suppliers can
be migrated to electronic
This represents 30% of the
invoice volume
Step 4: Integrate Electronic Invoices
A common scenario...
e-Transactions
Accounts Payable System
Invoicing System
Postal Service
(2-3 days)
ERP System
EnvelopeStamping
Open, sort, distribute
mail(1-2 days)
Seller
Buyer
ERP System
Step 4: Integrate Electronic Invoices
eInvoiceSender
eInvoiceReceive
rInstant
electronic delivery (2-3
sec)
e-TransactionsAccounts Payable System
Invoicing System
Postal Service
(2-3 days)
ERP System
EnvelopeStamping
Open, sort, distribute
mail(1-2 days)
Seller
Buyer
ERP System
Step 4: Integrate Electronic Invoices
eInvoiceReceiver
EDI via
VAN
EDI via
VAN
Both Sides Win...
Seller
• Single click to get invoice into Buyer’s ERP
• No printing, envelope, stamps
• No manual handling• Shorter DSO
(days of sales outstanding)
Buyer
• Advantages of Step 1, 2, 3
• No mail room handling
• No scanning, no OCR correction
• No Data Entry
• Use notification to help migrate suppliers
Step 4: Integrate Electronic Invoices
What About Approvals & Coding?
Integrated Workflow
Invoice Data Captured
Pre-Defined Rules
GL Coding and Approvals
Simple & Familiar Retrieval
Seamless Integration with ERP
Approx. Savings per invoice:Control paper flow: $10+ Reduce Manual Labor: $1+ Enhance process transparancy : $1.50+Add Electronic: $1.50+Improve Data Quality: $3+Automatic Feedback & Issue resolution: $5+
= Approx. savings from $22 per invoice
Reduction of errors & dispute costs with each phase
Adding up the savings
Next Steps
• Complimentary ROI Profile
• White Paper(s)• Custom
Demonstration
Thank You!
Thank You!For More Information, Contact:
Michael R. ThomasDirector – Solution Development
http://www.amsimaging.com