Webinar - Why accurate procurement data is critical to invoice automation1

Why accurate procurement data is critical to invoice automationTommi Kouhi Tobias Wikström

2.11.2016

Confidentiality Webinar - Why accurate procurement data is critical to invoice automation2

Agenda

• Introduction Invoice Automation in OpusCapita’s offering

• Why accurate procurement matters for Invoice Automation?– Top performers– Five key points for successful invoice automation– Purchases and the correlation to invoice processing

• Examples of errors sources

• Three practical examples – Procurement and invoicing working together!

• Closing remarks

•

2.11.2016

Confidentiality Webinar - Why accurate procurement data is critical to invoice automation3

OpusCapita by the numbers

Company:

• Founded 1984

• Over 2100 employees

• Revenue €257 million (2015)

Buyer-Supplier Ecosystem:

• 8 000 customers in over 100 countries

• ~100 000 suppliers

• 600 million transactions annually, 200 million processed purely electronically

• 40 million different products bought and sold

2.11.2016

Confidentiality

OpusCapita: Extended Purchase-to-Pay

2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation4

 

Confidentiality Webinar - Why accurate procurement data is critical to invoice automation5 2.11.2016

Why accurate procurement matters for Invoice Automation?

Confidentiality Webinar - Why accurate procurement data is critical to invoice automation6

Poll 1 - How well are your activities in accounts payable aligned with the activities of your procurement department?

• We have none or low level of cooperation

• We have some level of cooperation

• We continuously operate together

• We are fully streamlined and prioritized

2.11.2016

Confidentiality

What is the value of an efficient Accounts Payable process?

2.5xfaster

89%Increased

Source: The Hackett Group & OpusCapita Analysis

60%lower cost

cooperation

Best-in-class organizations look like this

2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation7

Confidentiality

Five key points for successful invoice automation

Get your free copy: http://www.opuscapita.com/whitepapers/5-key-points-for-successful-invoice-automation

8

Are we consistently using Purchase Orders?What to do with maverick spend?

Can we improve data quality by increased usage of e-invoicing?

Increasing automation with: “No-PO, No-Pay policy”

Are our invoice approval policies consistent across the company?

How to align the targets throughout the P2P process?

Control & visibility

2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation

Confidentiality

Purchases and the correlation to invoice processing

2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation9

3-way match and possibility to apply tolerance limits and manage extra costs

(e g freights)

Confidentiality Webinar - Why accurate procurement data is critical to invoice automation10

POLL 2 – Indirect purchases

• We don’t have any eProcurement system in use.• Some of the indirect purchases are done via eProcurement system.• All (or almost all) indirect purchases are done via eProcurement system.

Do you have any purchasing system for indirect purchases in use?

2.11.2016

Confidentiality Webinar - Why accurate procurement data is critical to invoice automation11

POLL 3 – Unmatched invoices

• POs are missing.• POs exists but GRs are not done.• Price differences.• Extra costs on invoices.• Misinterpretation on invoice data.• Other reason.

Which are the main reasons why invoices doesn’t match against POs/GRs?

2.11.2016

Confidentiality

Click icon to add picture

2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation12

Three practical examples

Webinar - Why accurate procurement data is critical to invoice automation13 2.11.2016

Invoice fully matched against matching items

Confidentiality Webinar - Why accurate procurement data is critical to invoice automation14

Invoice matched automatically, initial state

2.11.2016

Confidentiality

Invoice matched automatically, invoice matched

2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation15

Confidentiality

Invoice matched automatically, postings from the matching items

2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation16

Webinar - Why accurate procurement data is critical to invoice automation17 2.11.2016

Price difference when matching an invoice

Confidentiality Webinar - Why accurate procurement data is critical to invoice automation18

POLL 4 – Price difference

• We allow the price differences if it is in tolerance and match the invoice.• We always send an invoice with price difference for manual matching to purchaser or

orderer.• We update the correct prices on the POs and generate new matching items for invoice

matching.• Other.

How do you handle invoices with price differences?

2.11.2016

Confidentiality

Unit price difference on invoice vs. matching item

2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation19

Confidentiality

Unit price difference on invoice vs. matching item

2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation20

Webinar - Why accurate procurement data is critical to invoice automation21 2.11.2016

Extra costs on invoice

Confidentiality Webinar - Why accurate procurement data is critical to invoice automation22

Shipping cost on invoice

2.11.2016

Confidentiality

Approve extra costs within tolerance automatically

2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation23

Confidentiality

Click icon to add picture

2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation24

Closing remarks

http://www.opuscapita.com/events