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Vendor Reconciliations In SAP www.bestsapcbi.com

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Page 1: BEST Supplier Recons - slideshow

Vendor Reconciliations In SAP

www.bestsapcbi.com

Page 2: BEST Supplier Recons - slideshow

Why Reconcile Vendor Statements

Identify vendor invoices or credit notes not received or processed.

Ensure early settlement discounts taken.

Identify credits, payments or discounts not processed by vendor.

Prevent duplicate payment, over payment or payment to incorrect suppliers.

Enable clearing of long open GRIR to profits.

Reduce vendor queries, improve relationship and prevent disruption of supply.

Validate balance sheet creditor balance (and determine any possible provisions or

accruals).

Identify Procure To Pay issues.

BEST Vendor Reconciliations

Page 3: BEST Supplier Recons - slideshow

What is BEST Vendor Reconciliations?

Standard SAP does not include functionality to reconcile vendor statements.

In business, vendor statements are reconciled nonetheless, and SAP clients are forced

to process vendor statements manually (often ticking off on paper!), outside of SAP.

BEST is a fully integrated SAP add-on module that allows moving from manual, non

system statement processing to a more efficient, auditable, reportable system in SAP.

Simply, the benefits are all those associated with system processing rather than

manual processing.

BEST Vendor Reconciliations

GOODS

RECEIPT

INVOICE

ENTRY

PURCHASE

ORDER

STATEMENT

MATCHING

Page 4: BEST Supplier Recons - slideshow

Built In SAP For SAP

Built in SAP for SAP -> additional SAP module.

The product has been certified by SAP Germany and conforms to SAP standards.

Additional screens and reports – everything is in SAP!

Same SAP user authorisations controls.

Upgradeable as conforms with standard SAP methodology.

Fits within current IT architecture -> same hardware, transport and control procedures,

SAP support staff etc.

BEST Vendor Reconciliations

Page 5: BEST Supplier Recons - slideshow

BEST is in SAP – Additional Transactions

BEST Vendor Reconciliations

Page 6: BEST Supplier Recons - slideshow

Some Reference Sites

BEST Vendor Reconciliations

Page 7: BEST Supplier Recons - slideshow

Statement Reconciliation Outside SAP

SAP

Creditors

Docs

SAP

Downloads

/ Interfaces

View SAP

Screen &

Retype

Non SAP

Tool.

E.g. Excel

Vendor

State-

ments Paper

Email (e.g.

PDF or

Excel)

Manual

Matching /

Ticking

Manual

Recon &

Balancing

Print &

Sign

Manual

Approval

Save On

PC

Filing

Room

Ad Hoc Fax

/ Email To

Vendor

Printed

Recons

Limited

Management

Reports

SAP

Key

Manual

BEST Vendor Reconciliations

Page 8: BEST Supplier Recons - slideshow

Problems With Reconciling Outside SAP

Costly (personnel time, printing, errors)

No system controls or audit trails.

GRC and other compliance tools in SAP.

Limited, cumbersome and inaccurate

management reporting.

Risk of reduced cashflow, lost discounts, over

payments, delayed payments, supply disruption,

etc.

Employee disruption.

Duplication of vendor master and transactional

data in SAP and non SAP tool.

BEST Vendor Reconciliations

Page 9: BEST Supplier Recons - slideshow

Reconciling Vendors With BEST in SAP

Vendors

Electronic /

SAP PI /

EDI /

FTP /

iDOCs

Email

Report

Approve

Pay

Match

in

Multiple Statement Formats

Send

statement

Calculate vendor accruals

Report matching statistics

Track missing statements

Reconciliation reports

for all vendors and

companies

Automatic matches

(advanced algorithm

ensures high rate)

Suggested and

manual matches for

exceptions

No more signing on

paper – approve

online

Multiple approval

levels and criteria to

structure creditor

department

Optional payment

block if no statement

match

Match all SAP!

• Open & Cleared

• Parked & Held

• GR/IR

• Invoice tools

(OpenText,

ReadSoft, eFlow,

Dolphin etc)

Recon report

Load into SAP

Store in SAP

OCR (using BEST

OCR or any other) of

paper, scans, faxes

OR

Fast “Copy and

capture” to SAP

Auto into SAP from inbox, e.g.

[email protected].

PDF and other formats.

Upload

spreadsheets

into SAP

BEST Vendor Reconciliations

Page 10: BEST Supplier Recons - slideshow

Quick SAP Demo

Example of no human involvement / complete automation:

Supplier emails PDF statement.

SAP matches statement and sends supplier reconciliation report.

(In most cases, your AP personnel would first review the reconciliation report).

View a few different types of reconciliation report.

BEST Vendor Reconciliations

Page 11: BEST Supplier Recons - slideshow

Why Reconcile In SAP?

Our website / portal

Avoid risky and costly interfaces of vendor master and transactional data to non SAP

systems.

Match not only creditor documents but up the procurement chain in SAP:

Parked and Held

GR/IR (goods receipts with no invoice yet)

Invoices in process in VIM tools (Vendor Invoice Management) that interface to SAP

such as OpenText, ReadSoft, eFlow etc.

Option to block invoices for payment if not on statement.

Option to balance reconciliation to SAP payment (or proposal), not just vendor ledger.

Standard SAP creditor line item reporting shows reconciliation info.

Reconciliation report always real time as all data in SAP.

No printing or filing as:

Statement from vendor stored in SAP Content server.

Reconciliation approval in SAP – no more printing and signing.

Final reconciliation stored in SAP each month.

Accrual / provisions calculations automated in SAP.

BEST Vendor Reconciliations

Page 12: BEST Supplier Recons - slideshow

Why Reconcile In SAP? (2)

Our website / portal

Same existing:

SAP hardware and software – no new servers etc.

SAP user logins, so easy for users.

SAP Authorisation to control access, and audit trails in SAP.

SAP transport and control procedures.

SAP database and data back-ups.

SAP support staff.

BEST Vendor Reconciliations

Page 13: BEST Supplier Recons - slideshow

Why Reconcile in SAP?

OI (Open Item) or BF (Balance Brought Froward)

Online reconciliation approval

Option to block invoices for payment if no statement match

Send reconciliation (and remittance) to vendor.

Statement and reconciliation filed in SAP.

If no creditor match, also match to parked, held and GR/IR.

I.E. match to everything in SAP!

Calculate vendor accruals.

Matching rates.

Track missing statements &

approvals.

Match invoices

stuck in AP

automation tools

such as OpenText,

ReadSoft etc

Balance to vendor ledger.

Also to SAP payment / proposal Auto load

any statement into SAP: PDF, Excel, paper etc

Same SAP user logins and

authorisation controls

BEST Vendor Reconciliations

Page 14: BEST Supplier Recons - slideshow

Case Study Of Recon Processing Times Our website / portal

Statement Size Before BEST Time With BEST Time

Small – 5 Lines 30 Minutes 7 Minutes

Medium – 50 Lines 1 Day 20 Minutes

Large – 1000 Lines 1 Week <45 Minutes

Very Large – > 10 000 Lines 2 – 3 Weeks 2 – 3 Hours

Reference Site 1:

Statement Size Before BEST Time With BEST Time

Small – 5 Lines < 5 Minutes < 5 Minutes

Medium – 50 Lines 20 Minutes 5-10 Minutes

Large – 1000 Lines 1 Hour 10 Minutes

Very Large – > 10 000 Lines 1 Day 20 Minutes

Reference Site 2:

BEST Vendor Reconciliations

* Case studies available on www.bestsapcbi.com

Page 15: BEST Supplier Recons - slideshow

Return On Investment

Request a complimentary business case analysis to see the value of these benefits from

implementing BEST:

Personnel Time Savings

Paper Handling Costs

Reducing Supplier Spend

Improving Audit Controls & Management Reporting

Happier Suppliers & Employees

Built in SAP for SAP – maximise your SAP investment

*** For each benefit category above detailed slides follow to help calculate the

monetary benefits.

BEST Vendor Reconciliations

Page 16: BEST Supplier Recons - slideshow

Personal Time Savings

Task Days Previously

Spent Per Month

Days Saved Per

Month

Daily Personnel

Cost

Monthly

Saving

Manual matching of the supplier statement and preparation of

the reconciliation report. 0

Manually blocking and unblocking invoices for payment that are

not on the statement. 0

Printing the reconciliation report for approval and filing. 0

Scanning / faxing / emailing the reconciliation report to vendors

and others. 0

Scanning and emailing the remittance advice. 0

Preparing management reports by collating separate

reconciliation spreadsheets to prepare total figures etc.

Consider monthly operational reports, annual reports for audits,

accrual calculation etc.

0

Ad hoc query resolution, e.g.: finding filed reconciliations from

previous months; sending ad hoc reports to chase capturing of

outstanding invoices, etc.

0

Other? 0

Total 0

Consider how much time is currently spent on the activities below – and that can then be

reduced if you implement BEST:

BEST Vendor Reconciliations

Page 17: BEST Supplier Recons - slideshow

Paper Handling Costs

Consider how much paper is currently printed, scanned, faxed and filed – and how much

this can be reduced if you implement BEST:

Task Pages Per Month Pages Saving Per

Month Cost Per Page

Monthly

Saving

To enable statement matching, what is printed from SAP –

vendor line items (FBL1N)? the payment proposal? GR/IR,

parked or held listings? How many pages are printed monthly?

0

How many pages of supplier statements are printed monthly,

either to enable matching of the statement or to file it? 0

Is the reconciliation report printed for approval signatures or

filing etc? If yes, how many pages are printed monthly? 0

Is the statement scanned for electronic storage – how many

pages monthly are scanned? 0

Is the reconciliation report scanned for storage or scanned for

sending to the vendor – if yes, how many pages per month? 0

Is the reconciliation report faxed to the vendor – if yes, how

many pages per month? 0

Will the reconciliation balance to the payment? If yes, do you

currently send remittance advices via scanning or faxing – and

what volumes per month?

0

Are reconciliations filed and stored? What is the estimated cost

of this manual storage? 0

Other? 0

Total 0

BEST Vendor Reconciliations

Page 18: BEST Supplier Recons - slideshow

Reducing Supplier Spend

It is possible to reduce supplier spend enormously, as well as reduce the risk of erroneous

spend:

Spend Type Monthly Saving

Ensure claim all or more settlement discount as due to quicker and more accurate reconciliations,

uncaptured invoices can be quickly identified and captured

If you have a policy (or introduce such a policy) of only paying on statement, i.e. only pay invoices that

match the statement, then proper system control can ensure that no invoices are paid that shouldn’t be

paid.

As creditor personnel spend less time on mundane matching and producing of reports, more time can

be spent on resolving unreconciled items and other queries. Cleaner creditor accounts should result, as

well as a push back up the procurement chain to improve, for example, pricing data, goods receiving

practices, invoice handling and processing, etc.

If you are currently not able to manually reconcile every statement every month, you should now be

able to, and thus benefit from fast and accurate reconciliations for even the lower priority vendors.

Any credits from the supplier on the statement should be posted in SAP before the credit is reversed,

and in the current month to take advantage of cash flow.

Other?

Total 0

BEST Vendor Reconciliations

Page 19: BEST Supplier Recons - slideshow

Improved Audit Controls & Management Reporting

Type Monthly Saving

Reconciliations are produced by the system, the reporting is consistent and understandable and

balance.

Statements can be tracked by user, date and time from statement loading, through matching and

reconciliation reporting to emailing of the supplier.

A configurable, multi-level statement approval system ensures that statements are checked according

to management policy, with associated approval audit trails.

Any missing statements for the period can be immediately identified by company, clerk and vendor.

Accrual (or estimated unrecorded liability) reports at the press of a button across all suppliers.

Analyse statement matches and clerk workload by vendor, company, profit centre, period, and SAP

document type.

As supplier statement data is in the SAP database, all manner of system reporting becomes possible.

Other?

Total 0

BEST Vendor Reconciliations

Page 20: BEST Supplier Recons - slideshow

Happier Suppliers & Employees

Type Monthly Saving

A neat, precisely balanced reconciliation can be emailed to your supplier. Faster and more

accurate reconciliations will help resolve issues faster. This will lead to happier suppliers.

Working in a paper, manual environment can sometimes be chaotic for employees. Moving to a

more streamlined, system environment can help to create a happier work environment.

Other?

Total 0

BEST Vendor Reconciliations

Page 21: BEST Supplier Recons - slideshow

Built in SAP for SAP – maximise SAP

Maximise your current SAP investment!

No new hardware or IT support staff or skills are required.

No complex interfaces to non SAP systems. Huge cost and risk.

No duplicate vendor masters.

No duplication of all creditors transactions (hundreds of thousands per month?).

You do not have to login to two different systems continually throughout the day.

SAP transactions are immediately and automatically reflected on the vendor reconciliation. No waiting for

interfaces to run.

Vendor statement fields can be maintained and reported within the standard SAP transactions:

Standard SAP creditor line item list

Standard SAP audit trails of changes

Standard SAP vendor master.

Standard SAP payment run (e.g. block unmatched invoices).

Standard SAP access control / authorisations.

Standard SAP transport procedure.

Benefit value?

Back…

BEST Vendor Reconciliations

Page 22: BEST Supplier Recons - slideshow

High Level Project Plan

Phase M1 M2 M3 M4 M5 M6

Project Preparation

Design

Build

Testing (Integration/ UAT)

Data Prep/ Pilot Cutover

Training

Pilot Go Live & Support

Roll Out & Support

Project Close

While implementing BEST is not a large project, the plan is well developed after many

implementations at large organisations.

Standard timeframe is 3 months to Go Live, and a further 3 months to project close-out.

Minimal client IT and business involvement.

BEST Vendor Reconciliations

Page 23: BEST Supplier Recons - slideshow

For brochures, customer case studies and more

please see www.bestsapcbi.com

Please contact us with questions, for a more

detailed demonstration or to discuss your

requirements.

Vendor Reconciliations In SAP