Newgen Accounts Payable Solution

An Overview

Newgen Offering for Accounts Payable Process

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Accounts Payable Process

• Invoice is the document submitted by the Vendor asking for the payment for delivered goods for services rendered. Hence, Invoice Processing is Often, comfortably, used as a name in place of Accounts Payable Process.

Challenges in a Manual AP Process

Invoice Submission

• Handling Multiple Invoice Sources EDI, eInvoice, Emails, Scanning etc.

• Handling Different formats for multiple vendor

Invoice Processing

• No traceability before ‘Registration in ERP’

• Xls based Exception & Escalation Management

• Physical Docs Movement

• Process Complexities like PO, Non-PO, Multiple Bills, different approval hierarchy

Invoice Visibility

• Limited Tracking of invoices

• Xls based Manual Reporting

• No visibility for Management, Operations and Vendors

Newgen Business Process Management Platform

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Business Process Improvements / Transformation and Agility

SAPOracle EBS

JDEPeopleSoft

MFGProLegacy

Bringing People, Process and Paper Together

Filenet, Documentum, MOSS, Others

Automatic Routing, Exceptions, Alerts

Typical Accounts Payable process

Receiving Invoices

Verification Data Entry Approval Payment Run

Locations:

• Factories

• Plants

• Branches

• Field Offices

AccountingPackage

Processing:

• Shared Service Center/BPO

• Head Office

Business Unit

Accounts Payable Process (AP)

AP Process

• Template based Process Offering• Configurable as per Business Needs• Enhanced process visibility & efficiency• Operational risk mitigation & building internal control• Exceptions handling• Better cash flow planning• Improved vendor service

• In built configurable connectors to call relevant SAP GUI at various steps• In built connectors to exchange data with SAP.• Unified Access – SAP Web UI embedded in OmniFlow Web Client• Configurable alerts and escalations as business needs• End to End tracking of all transactions.

Newgen Solution Complements ERP

AP Processing

Online Archive

Register Invoice

Verify Invoices

No Vendor ID Duplicate InvoicePO Invoice -Mismatch

Exception-

Missing Documents

Approval for Non-PO Invoices

Post Invoice

SAP

PaymentRun

Discrepancy Resolution

Approvals

Image Based Processing

Monitoring, Tracking, Measurement, Reporting

– Anytime, Anywhere

Alert

Email

Paper Invoices

Invoices in email

Faxed / Scanned invoices

Invoice Capture Modes

EDI/Vendor Portals

Receiving Invoices at Locations

Typical invoices processed across organizations include:- PO Based Non PO Based CAPEX Invoice Corporate Card Statements Credit Notes Employee Bills

Supporting Documents required with Invoices : Proof of Shipment / Delivery challan Quality Certification Tax certificates TDS Authorization

Receiving Invoices

Verification Data Entry Approval Payment Run

Verifying received Invoices

Common discrepancies observed in received invoices include:

Duplicate Invoice

Supporting documents missing

Vendor not registered

Incorrect date / Post dated Invoice

Payment Terms violation

PO Details missing

Receiving Invoices

Verification Data Entry Approval Payment Run

Data captured in ERP includes:

– Business Unit Code

– Invoice No.

– Invoice Date

– Invoice Amt

– PO No. (if any)

– Vendor Code

– Line Item Details

– Currency

– GL code

Data Entry/Capture at Shared Service Center

Example of discrepancies found here:

– Incorrect Amount entered

– Amount mismatch with PO

– Currency of Purchase order does not match

with Invoice

– Incorrect Account Code

– Invoice details do not match with the PO

– Quantity and Rate Variance

– Total Mismatch (2 way / 3 way)

– Incorrect VAT calculation

Receiving Invoices

Verification Data Entry Approval Payment Run

Approvals

Approvals / signatures are required for:– Non PO Based invoices

– Abnormal Invoices

– In case of multiple budget centers

– Amount based

– CAPEX

Payment Run:– Once the Invoices have been approved; the Payment run is commenced in the ERP

– Payment details maybe sent to a Bank for disbursal or creation of checks

– Checks once issued by the bank come back for signing and reconciliation to the Business Unit before finally being given to the vendors

Receiving Invoices

Verification Data Entry Approval Payment Run

Value Additions with Newgen’s Workflow Automation

Receiving Invoices

Verification Data Entry Approval Payment Run

Receive:

•Emails

•Faxes

•Imaging

•Kick start workflow and Paperless processing

•Account for every invoice

Alerts for:

•Invoices

•Supporting docs

•Check-list against discrepancy

•Route work back to Vendor or Location for resolution

Rules and Validation for Data capture

Image assisted Data Entry

Automatic 2 way / 3 way matching

Automatic alerts

Auto-routing for Approval

Multi-level Escalation

Parallel Routing to Multiple Approvers

Post data to ERP

Alerts for final Payment approvals

Payment updates from ERP for Tracking

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Reporting & Dashboards

Accounts Payable – Solution Benefits

Management

• 360 Degree of Accounts Payable Process

• Total Control of the Process with real time KPIs and SLA Watch

• Establish best practices of Invoice Processing

• Ensure accountability and responsibility of every individual in Processing

Operations

• Paperless Invoice Processing

• Identify Bottlenecks in Invoice Processing

• Better Management of Turn-Around-Time and Controls

• Anytime Query of Status and Possible Remedial action

• Complete Audit Trail

Technology

• Highly Agile and Flexible Framework

• Highly scalable Architecture – Managing Millions of Transactions

• Seamless integration with Multiple ERP’s Connectors

Thank You