modernizing the jdedwards ap process

Modernizing the

JDE AP Process

Tim DelCotto – IT Delivery Manager (Finance)• Land O’Lakes - Minneapolis, Minnesota• LinkedIn

Dan Atwood – Software Solution Architect• AVIO Consulting - Plano, Texas• LinkedIn

About the Presenters

AVIOCONSULTING.COM 2

https://www.linkedin.com/in/timdelcotto

https://www.linkedin.com/in/danatwood

Company• Founded in 2007• Global delivery capabilities for

projects in Americas, EMEA, and APAC• Offshore capabilities in Buenos

Aires• Over 200 enterprise integration

implementations

Product Focus• Oracle Fusion Middleware• Oracle Cloud• Process Cloud, Document Cloud,

Integration Cloud, SOA Cloud, Java Cloud• MuleSoft AnyPoint Platform• Amazon AWS

AVIO Consulting Overview


One of America’s Premier Member-Owned CooperativesSecond-Largest Cooperative in the Nation • 10,000 employees• 3,200 direct producer-members • In all 50 states• More than 50 countries

Net Sales for Land O’Lakes in 2015 were $13 billionThree Business Units• Dairy Products• Seed/Crop Protection Products• Animal Nutrition

Land O’Lakes Overview


AP Processing

Vendors

Accounts Payable

Payment

Archive

ERP

4 ERP SystemsJDE 8.1.2 (Dairy)JDE 9 (Winfield)JDE EnterpriseOne XE (Purina)Fusion (Indirect spend)

AP Technician (~ 45)

Business Partner(1,000

+)

1,000,000+ invoices processed/year

60,000 vendors

50/50 electronic and paper invoices


Work Management and Efficiency• Automated recognition process was not effective• No automated matching into the ERP systems• Business Partner interaction via unstructured email• Ineffective task prioritization• Low SLA awareness

Work Visibility and Search• Searching Ineffective and Slow• Data for Sorting and Viewing Invoices Limited

AP Challenges


Improve Conversion to Digital Format• Decrease form recognition batch failure rate from 95% to 50%

Effective Integration to ERP SystemsBusiness Rules for System Driven RoutingBusiness Exceptions Resolved via Defined ProcessDefined Prioritization Built into the Workflow• Based on Discount, Due Date, Vendor Terms, Vendor Country

SLAs Defined and Leveraged to Drive Process Logic, Including NotificationsEnhance Communication with Internal Partners for Exception ResolutionComplete Audit Trail of Actions Performed

Goals


“Gaps in the Apps”Zero Modification of ERP(s) • Modifications make ERP upgrades much more difficult

Multiple ERPs • None at Land O’Lakes do auto 3-way match

Manual Effort is Still Required to Correct Scan Errors• With Business Process Management (BPM) user interface,

the invoice and metadata are viewed simultaneously

Why Fusion Middleware?


Phased Approach • Phase 1• Process Improvement• Improved capture/business process management• Key Success Measure – Discounts• Key Success Measure – Productivity

• Integration with ERPs• Phase 2 • Improved OFR/Pass through processing• Improved integrations with ERP’s

Agile Development•Team – AVIO + Land O’Lakes

The Solution


AP Processing System Components


Image Capture• Scans batches of

documents• Accepts from

incoming emails• Monitors the file

system for documents

Batch Splitting• Split batches into

multiple documents

How are Invoices Captured?


Optical Character Recognition (OCR)

• Learn SetsClassify the Images OCR Verification

• Release to IPM

How is Invoice Data Captured?


Stores Images and Metadata

Image Viewer

Image Search

Image Annotation

Initiates BPM Process

Where are Invoices and Data Stored?


AP Basic Process


Actual Process Model


Service Activity Business Rule

User Activity

Business Rule – Assign Priority


AP Tech View – Work List


AP Tech View – Match Invoice Activity


Business Partner View – Resolve Exception


Business Activity Monitoring (BAM)• Operational data store for collecting metrics• Supports•Operational needs• Do the number of invoices input into the system reconcile with the number that have

completed processing ?• How many invoices are at each activity in the process? • Should people be reassigned to support a different queue?

• Analytical needs• What proportion of invoices with discounts are paid promptly?• What is the average processing time per invoice? Per AP Tech?

Reporting


Daily Volume


Reconciliation



Fills “gaps in apps” with no ERP modificationVisibility Flexibility to quickly add new lines of business Time and cost reduction • Discount achievement• Labor efficiencies through reduced time per invoice

Benefits Achieved

AVIO Consulting

Onlinewww.avioconsulting.cominfo@avioconsulting.comavioconsulting.com/blogfacebook.com/avioconsultinglinkedin.com/company/avio-consulting@avioconsulting

Contact Us!