speed, visibility and control— best practice ap processing...

Speed, Visibility and Control—

Best Practice AP Processing in Oracle E-Business Suite

Kevin Ryan, Regional Sales ManagerReadSoft Oracle Solutions

Presented by

Agenda1. The Dilemma of Manual AP

Inefficient Risky Costly

2. The Advantages of Automated AP Processing− Hard Savings− Soft Savings

3. A Picture of Best Practice AP Processing− Simplify Processes− Apply Capable Technology

The Dilemma of Manual APTop Pressures Driving Interest in AP Improvement

A Day in the Life of an AP Department

Manual Environment

35%

35%

15%

15% Data entry

Exception handling

Vendor Support

Audits and ReportingSource: ReadSoft Customer Survey

The Dilemma of Manual APInefficient

• Cumbersome processes– Physical mail– Hand keying and copying of invoices– Physical invoice approval routing– Excessive or slow communications

• Email, fax, mail– Ineffective problem resolutions– Manual storage

The Dilemma of Manual APLacks Visibility

– Delayed receipt– Lots of missing invoices– Approval process tracking– Performance metrics and SLA– Accrued liability/

compliance reporting

The Dilemma of Manual APPoor Controls

– Lack of standard procedures– Lengthy audits– Difficult to see fraud

The Dilemma of Manual APCycle Time is Slow

– Missed discounts– Late payment penalties, services cut off– Unhappy vendors and poor credit rating– Inability to negotiate better terms/pricing

The Dilemma of Manual APRestricts Scalability

– Unable to increase production volume without• Increased staff• Increased office space• Increased infrastructure• Increased supervision

Advantages of AP AutomationBenefits of Approval Workflow

PayStream Advisors, 2013

Advantages of AP AutomationHard Savings

– Dramatically lowers transaction costs– Reduction / reallocation of costs associated with

manual processing– Low TCO– Better terms

with suppliers– Fast ROI

Advantages of AP AutomationSoft Savings - Speed

– Shorter processing and payment cycle times– Shorter response times– Productivity is improved– Streamlining of major AP sub-processes

• Invoice receipt• Approval and inquiry• Validation and reconciliation• Settlements

– Pre-defined best practice workflows

Advantages of AP AutomationSoft Savings - Visibility

– Into the entire process• Three points: capture, workflow, ERP

– Into liabilities and operating expenses• Billing discrepancies• Overpayments• Unclaimed negotiated discounts• Contracted payment terms• Early payment discounts• Late penalty fees

– Reporting

Advantages of AP AutomationSoft Savings - Control

– Simplified, automated invoice and workflow management

• Based on organization’s business rules

– Improved forecasting and cash management– Decreased financial risk through enforced compliance– Better coordination and information flow

• AP• Procurement• Finance• Treasury• Suppliers

Best Practice AP ProcessingProcess

– Centralize invoice receipt– Institute a “No PO, No Pay” policy where possible

and integrate invoice-to-PO matching– Reduce paper and physical routing– Measure AP performance

• Once a month or more• Enable dashboards

– Standardize invoice processes• Across all locations and units• Eases difficulty of identifying root

causes or errors

Best Practice AP ProcessingApply Technology – Key Capabilities

– Ensure that data are shared between solutions and all stakeholders

– IT Considerations• Consistent with Oracle’s Strategic Direction

– Fusion Middleware– Ease the transition when you upgrade to R12

• Quick implementation– Configurable versus customizable

• Seamless integration

Best Practice AP ProcessingApply Technology

– Invest in automation of invoice receipt and workflow• Advanced OCR• Best practice workflow

» Automated PO matching» Accelerated coding» Line level approval

AP Automation is Becoming Mainstream

15%

49%

33%

3%

Level of Accounts Payable Automation

HighMediumLowNone

The Accounts Payable Network, 2012

The current state of APOCR Technology

The Institute of Financial Operations, 201

Best Practice AP ProcessingApply Technology – Key Capabilities

– Other important considerations• Cloud Option• Mobile Approval Option• Vendor Portal Option• Reporting Tool Option

Graco, Inc.

AP Manager, Graco, Inc.

Green Mountain Power

“The users just accepted ReadSoft’s solution like it was

another piece of Oracle.”

“The users just accepted ReadSoft’s solution like it was

another piece of Oracle.”

“We’re able to better manage our money—we know what’s outstanding in people’s workflow,

waiting to be coded and then paid.”

“We’re able to better manage our money—we know what’s outstanding in people’s workflow,

waiting to be coded and then paid.”

Purchasing Manager, Green Mountain Power

Purchasing Manager, Green Mountain Power

About ReadSoft Experts in AP Automation

8,500 customers Market leader in installations

Solutions validated by Oracle− Supports Oracle E-Business Suite R12− Dedicated Oracle Solutions Lab in Raleigh

Delivers low total cost of ownership (TCO) Simple, easy-to-use solutions Global footprint, stable company

Questions

www.readsoft.com

For More Information

www.readsoft.com

kevin.ryan@readsoft.com

ReadSoft – Oracle Solution Discussion

April X, 2013

RalieghReadSoft Corporate Background

Established in 1991 8,500+ customers 590 employees in 17 countries 300+ partners in 70 countries Oracle Platinum Partner ReadSoft Oracle Solution Lab

opened in 2005

ReadSoft on the map

ReadSoft Financials

Publicly traded on the NASDAQ OMX, Stockholm’s Small Cap List

Introduced dividends to shareholders for the first time in 2009

$121M Revenues in 2012

Continuing Positive Cash Flow– $12.5M reinvested into business in 2012

Product expansion in Capture, SAP and Oracle landscape on premise and in the cloud

ReadSoft North America

Serves US and Canada

Largest subsidiary

Highest profit subsidiary

Largest consulting services and training staff

1,200 customers

84 employeesRaleigh

New OrleansREGIONAL HEADQUARTERS

ORACLE ERP SOLUTIONS LAB

ReadSoft Oracle Customer Sampling

Any ERP

Any targetsystem

Purchase to Pay / Order to Cash

Accounts Payable Automation

Purchase to Pay / Order to Cash

Accounts Payable Automation

Enterprise CaptureEnterprise Capture

DocumentsAll formats, all media

The ReadSoft overall offering

Any ERP

Any targetsystem

CaptureCaptureIntegration and workflowIntegration and workflow

CaptureCaptureIntegration and workflowIntegration and workflow

CaptureCaptureIntegration and workflowIntegration and workflow Partners

DocumentsAll formats, all media

CaptureCapture Partner solutionsPartner solutions

The ReadSoft overall offering

The ReadSoft ecosystem

Core technologies

Products

ReadSoft

Partners

Document classification Archiving solutions

Case managementData capture

Other ERPs

Solutions

ReadSoft First to Add ERP Workflow

ReadSoft was the first capture vendor to fully recognize the importance of adding workflow (SAP and Oracle) to invoice capture.

Source: Document Imaging Report, September 18, 2009

Acknowledgement

“Despite some competitive focus on analytics ReadSoft has acquired and partnered for both better technology and process logic.

ReadSoft's intelligent capture and its presentation of analytics in the cockpit continue to impress business buyers looking for certified integration, simple process automation and good management insight.”

Critical Capabilities in Composite Content Applications: Paper Invoice Automation, Toby Bell, Dec 2010

Acknowledgement

Critical Capabilities in Composite Content Applications: Paper Invoice Automation, Toby Bell, Dec 2010

“With a wide range of solutions for procure to pay and order to cash, ReadSoft continues to excel at document process improvement surrounding ERP.”

ReadSoft AP Automation Solution

Oracle Validated Integration Operates in the Oracle environment Security and support is guaranteed by Oracle

Supports Oracle version upgrades

ReadSoft AP Automation Solution

Incorporates Oracle BPEL Reuses Oracle approval, and financial

and account settings Validates imported data against Oracle rules

Automated posting in Oracle AP for payment

PROCESSIT Solution Suite

PROCESSIT – Document Processing Automation for Oracle® E-Business Suite

Automates the accounting and matching process for incoming invoices.Eliminates manual paper handling, typing,

storage & retrieval of invoices.Addresses the needs of the organization

including Application Monitoring Tools for IT

Scanning OptionsLocalRemote DisconnectedWAN

E-Mail Delivery

E-Invoice XMLEDI

Supplier WorkbenchE-Form EntryPO Flip ERS

Invoice Capture Methods

1 Inbound InvoicesInvoices in various forms are submitted by suppliers through multiple channels – in paper form or electronic format

2 Invoice Capture VerificationThe captured image and metadata is verified by an operator the first time around and only if needed afterwards

3 Invoice Data TransferThe captured image and metadata is transferred to PROCESSIT

4 Invoice ProcessingInvoices can be processed in a “lights out mode” for automatic staging in Oracle Accounts Payable for payment processing or can be routed for GL Account Coding, Matching, and Approval Management

5 Invoices Ready for PaymentInvoices are staged in Oracle Accounts Payable 11i or R12 ready for payment

Invoice process automation in Oracle EBS

Sup

pli

ers

Mai

lro

om

Suppliers send invoices via mail, email, fax, XML

Mailroom scans paper invoices

Acc

oun

ts P

ayab

le

Invoices are interpreted by DOCUMENTS, verified by a user if required, and transferred to PROCESSIT

Automatic Match?

Approval Process according to ERP hierarchy

Approval Process according to ERP hierarchy

Invoices are ready for payment

Invoices are ready for payment

Account CodingAccount Coding

OCR-data is sent to ReadSoft DOCUMENTS

Standard invoice validations applied

No

Yes - Full match!

Automated invoice handling with optimized processing

PROCESSIT Solution Suite

Licensed Add-On Modules extends the product, offering improved vendor collaboration, in-depth auditing reports for fraud risk analysis, and mobile device support

PROCESSIT MobilePROCESSIT Auditor Advanced EditionPROCESSIT Supplier Workbench (Web Portal)

Automating Invoice Processing in Oracle E-Business Suite