“going from good to great” - amazon web services€¦ · the accounts payable &...
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The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 6/1/2016
“Going from Good to Great”
Dennis Cooper, Vice President,
Accounts Payable Operations
PNC Financial Services Group
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 2 6/1/2016
ABOUT PNC BANK
PNC is one of top 10 largest banks in America providing deposit, lending, cash management and investment services to more than six (6) million consumers and small business customers across nineteen (19) states and the District of Columbia.
Multi site Team located in Cleveland Operations Center and Pittsburgh Allegheny Center
Accounts Payable department has earned Accounts Payable Department Certification through The Accounts Payable Network
80% of team earned an Accredited Payables Specialist (APS) or Accredited Payables Manager (APM) certification.
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 6/1/2016
P2P Top Performers
based on overall efficiency & effectiveness
Efficiency Drivers
Cost per Transaction
Span of Control
Invoice Processing Cycle
Time
% of Electronic Transaction
Level of Automation
Effectiveness Drivers
On Time Payment Rate
Level of Centralization
Training Investment
Streamlined Transaction
Strategy
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 4 6/1/2016
Changes ahead for PNC Accounts Payable Process
Building strong analytic team:
Stronger risk and control oversight
Opportunity to identify areas to
improve AP as profit center:
Interchange revenue, Recovery
Audits, discounts
Continue process improvement
Defined Payment Strategy
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 5 6/1/2016
Accounts Payable – Profit Center
Travel & Entertainment Credit Card
Administration • Policy Compliance • Training – Employee On-Boarding • Credit Card Limit Evaluation • Maximum Credit Card Usage –
Interchange Revenue
Executive Level Reporting • to Line of Business(s)
P-Card Program Administration • Policy Compliance – P-Card
preferred payment method • Communication – Benefits of
payment instrument, interchange revenue
Executive Level Reporting • Track success
Finance Treasury Management
Line of Business(s)
Finance Treasury Management
Sourcing
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 6 6/1/2016
AP Strategy
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 7 6/1/2016
Strategy Benefits
Controls
+ Provide better quality controls
+ Gain visibility into accruals and liabilities with better reporting
+ Better management of cash flow and overall payment disbursement process
= Reduced Risk
Efficiencies
+ Enable Accounts Payable to ensure that invoices received monthly are processed and/or accrued
in the proper calendar period
+ Alignment AP with today’s industry standards; Recent survey conducted by Institute of Financial
Operations indicated 71% of respondents currently work in a centralized environment
+ Leverage electronic invoicing technology to reduce operating cost and improve processing
efficiency
= Increased accuracy with lower cost
Employee
+ Improve employee experience by eliminating user’s time spent on prepping and entering invoices
+ Increase job satisfaction by converting several members of the AP staff from specialists to analysts
= Stronger, more efficient workforce
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 8 6/1/2016
Accounts Payable - Goals
PEOPLE
Create multi-task environment to improve
productivity & job satisfaction
Develop analytic team
PROCESS
Consolidate & Diversify Credit Card Program(s)
Centralized invoice receipt
TECHNOLOGY
P2P
Business Intelligence Tools
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 9 6/1/2016
AP Audit Recovery – Top Performers
Average AP Recovery by Type
Top Performers recover twice
the value through AP
recovery audits compared to
peers [VALUE]%
[VALUE]%
[VALUE]%
[VALUE]%
[VALUE]%
[VALUE]%
[VALUE]%
0 5 10 15 20 25 30
MISSED PAYMENT DISCOUNT
MISSED REBATES
SALES & TAX RECOVERY
PURCHASE RETURNS
PRICING ERRORS/OVERPAYMENT
UNCOLLECTED CREDIT MEMOS
DUPLICATE PAYMENT
System functionality to detect & report on recovery / error / fraud risks (Percent of Participants)
Payment Analysis Tool
Core ERP Functionality Enabled
Ongoing Compliance Monitoring Solution
53% 87% 67%
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 10 6/1/2016
Dynamic Discounting Management
• Allows cash to be invested safely at rates that can significantly exceed returns from traditional investments (S&P 500, capital purchases)
• Standard discount (Net 10, 2% discount) translates to an annual savings of almost 37%.
The Accounts Payable & Procure-To-Pay Conference & Expo is produced by: 11 6/1/2016
Dynamic Discounts Facts
What
Early payment offers on all approved invoices awaiting payment
Sliding Scale – discount decreases with the passage of time
Static - discounts spread over 30 days, making virtually all invoices paid in 29
days or less are eligible for a discount.
Why Saves money on invoices that are approved quickly
(Generated directly from a purchase order, originating electronically via EDI, vendor
portal, or e-Invoicing network)
How
Technology is the key
User-friendly interface that brings buyers and sellers together with ease
Allows flexibility on both sides of individual transactions to benefit by
capitalizing on early payment discounts on a larger scale.
Funding for sliding scale dynamic discounts usually comes from a buyer’s
working capital, although banks, and third parties are becoming more involved
as word of available returns and relatively low risk spreads.
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