SAP Invoice Management

by Open Text

Invoice reconciliation done efficiently

Cathy DawSAP

Paul UnsworthOpen Text

18th November 2009

1. The Need to Optimize the Cycle

2. Value Proposition of SAP Invoice Management by Open Text

2.1 Strategic Arguments

2.2 Functions and Features

3. Achieving Results with SAP

4. Summary

Agenda

© SAP 2008 / Page 2

Does this scenario look familiar?

CEO“Our cost of capital and

material costs are too high.”CFO“My cost of accounts payables is

not state-of-the-art and neither is

our cost of goods purchased.” Financial Analyst“Use of cash discounts is

low, cost of capital is rising.”

Supplier“Doing business with that

company is difficult as they

are unable to tell when they

pay their invoices.”

Accounting“We cannot say which invoices we have received

across different departments and we have no

control over the time-to-payment.”

Purchaser“We could lower the cost of goods

if we could make systematic use

of cash discounts.”

Accounts Payables“We spend more than 50% of our

time responding to calls and

emails from suppliers requesting

state of invoice or complaining

about late payment.”

Is this organization prepared to:

Increase process efficiency

Reduce finance operating costs

Make use of cash discounts

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Poor vendor relations

Excessive cost per invoice

Difficulty in preparing

accruals

Fragmented stand-alone

systems

No workflow or data

management

No integration with

General Ledger (GL) or

Accounts Receivable

(AR) systems

Inadequate AP

process control

(compliance risk)

Limited visibility of liabilities

No insight into process

bottlenecks

Fragmented and

inefficient

Paper-based and labor-

intensive

Lack of standardization

Typical barriers to efficient

Accounts Payable (AP) operations

Result:

High Cost of

Finance Operations

Bad Vendor Relations

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Result:

Efficient Operations

Reduced Costs

Improved Vendor

Relations Integrated systems and

processes

Global visibility into

liabilities

Consistent payment behavior

across countries and

organizations

Systematic, collaborative

approach to collections and

disputes

Standardization and

greater automation

Streamline manual, paper-

based processes

Workflows that minimize

reconciliation time

What it takes to optimize

the AP invoicing process

© SAP 2008 / Page 5

Invoicing Strategies/options within SAP

XI/XML

EDI

Marketplaces

e.g. Zanzibar

Self billing

SAP

Supplier

Portal

Paper invoices prepared and transformed

SAP invoice management Solution from Open Text

Number of Suppliers

Nu

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of

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s

Agenda

1. The Need to Optimize the Cycle

2. Value Proposition of SAP Invoice Management by Open Text

2.1 Strategic Arguments

2.2 Functions and Features

3. Achieving Results with SAP

4. Summary

© SAP 2008 / Page 7

Differentiators of SAP Invoice Management by

Open Text

The only one-stop-shop solution from your landscape vendor:

Harmonized look-and-feel – familiar to your SAP users, thereby reducing training efforts

Reduced cost of operation – proven SAP technology, instead of technology clutter

No integration risk – this not available from any other vendor

No maintenance risk – one source of customer support, service packs and upgrades

Reduced vendor obsolescence risk – SAP’s proven track record reduces risk of

vendor obsolescence

Grows along your business needs:

Supports multiple back ends (SAP, non-SAP) achieving invoice transparency across the

corporation

Supports multiple languages and in-country rules and regulations regarding invoice handling

Scalable to the highest invoice volumes

Future proof – will work with future SAP Enhancement Packs and ERP releases

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What your organization gains from SAP Invoice

Management by Open Text

Simplify and optimize the entire invoice management process:

Create workforce efficiencies through an automated, streamlined process with or without the

added benefits of Shared Services

Improve working capital management through better visibility to cash requirements

Cut costs through automated data extraction with the OCR option and process automation

and control

Reduce costly manual errors

Optimize cash discount utilization

Improve business processes while reducing compliance risks:

Enable more accurate financial reporting through complete visibility

Segregate duties through workflow control – invoice processor and all process constituents

Monitor across all steps of the invoice process comprehensively

Provide complete audit trail – from receipt through settlement

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What your Finance Shared Services Organization

gains from SAP Invoice Management by Open Text

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Cost

Cost of manual data entry virtually eliminated

Costly focus and follow-up on numerous

status calls and complaints from suppliers

avoided

Need to install more instances when

adding countries avoided through localization

Risk

One place to monitor all invoices

Platform for central service delivery, enabling selective process harmonization

Transparent routing of invoices to process constituents across the corporation

Data entry errors and the associated risk and cost drastically reduced

Quality

Processing capacity grows with volume, without need to grow headcount proportionally

Consistent service provision adhering to KPIs and SLAs

Streamline accounts payable operations

with OCR

Less labor cost for manual keying

Built-in knowledge base with over 4,000 different invoice types from

over 20 countries, provides exceptionally high automation rates

Combining OCR with human data verification minimizes data

defects

Automated procedures extract more business data than possible

with manual methods

Any volume of invoices can be processed in the desired time using

a recognition server cluster

Invoices without OCR errors are automatically forwarded to invoice

processing

Compliance checks are based on data extracted from invoices

More accurate data allows more business rules to be implemented

© SAP 2008 / Page 11

Costs

Data Quality

Efficiency

Compliance

Benefits you gain throughout the entire

invoice management process

Familiar SAP Look and Feel

Full Access to Familiar SAP Function

and Graphics

One-Click Access

User Friendly GUI/Screens/Dialog

Boxes Make It Easy

Accurate, Efficient Processing

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Standard SAP tools are included for sort, filter, print, email, export

Complete history of all processed invoices

Summary overview of invoices, including the number of and value of invoices

Audit history with comments

At-a-glance reporting

Approval history at-a-glance

Approve or reject data

Prior approvals

Locate necessary supporting documentation, including invoice image, purchase order, goods receipt, SAP invoice, comments and complete history

Process data

Analyze data

Comment on data

Validate data

Role-based routing ensures accurate team review, resolution and approval

Automated data capture for fast and accurate data entry without human effort

© SAP 2008 / Page 13

SAP Invoice Management Platform

SAP ArchiveLink

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© SAP 2007 / Page 14

IM Functionality Overview

SAP Invoice Management

Archive Server

SAP ERP

Document

Processing

Invoice Approval

Exception Handling

SAP IM Analytics

OCR

Scan

Electronic

SAP Exceptions

Condition PO-Related Non-PO-Related

Invalid Data Format X X

Invalid PO Number X --

Invalid Vendor Number X X

Invalid Unit-of-Measure (UOM) X --

Invalid Currency X X

Invalid Requester -- X

ReScan Required X --

Unable to Determine Company Code -- X

Suspected Duplicate Invoice / CM X X

Approval Required X X

Vendor Audit Required X X

Vendor Maintenance Required X X

Vendor Mismatch X --

Non-PO Credit Memo -- X

PO is Not Released X --

Unable to Match PO Lines X --

Service Entry Required X --

Currency Mismatch X --

UOM Mismatch X --

Freight on Invoice X --

Tax Audit Required X X

Unable to Auto-Park Invoice / CM X X

Price Discrepancy X --

Quantity Discrepancy X --

Unable to Auto-Post Invoice / CM X X

SAP Invoice Management

Automated paper-to-post invoice management

© SAP 2008 / Page 16

CommentTrigger workflows Post invoices

InvoiceRecognition

Collaboration & Monitoring

InvoiceCompletion

InvoiceVerification

OCR Option for

SAP Invoice

Management ERP (FI/AP)

Payment

SAP Invoice Management

Prüfung und

Vervollständigung

UMWANDLUNG

VERIFY AND

COMPLETE

EXCEPTION

HANDLINGAPPROVE

Automated reconciliation and posting

TRANSFORM PAY

OCR

Validation

Inbox(incoming mail / fax)

PREPARE

Open Text

Archiving for

SAP® Solutions*

* or another SAP ArchiveLink-certified repository, not part of Open Text Vendor Invoice Management

Scanning

Archiving

1. The need to optimize the cycle

2. Value proposition of SAP invoice management by open text

3. Achieving results with SAP

4. Summary

Agenda

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Customer return on investment

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Typical customer realizes >50% cost-per invoice decrease and return-on-investment

in <12 months through:

25%-50% FTE Headcount redeployment

(20-50%) Lower cost per invoice reconciled

(<75%) Lower cost of errors

Reduce Duplicate invoice processing

Improved vendor relations

50-75% less Vendor hotline traffic

Less follow-up effort On vendor status requests and complaints

Realize Increased cash discounts

Lowe cost Through better pricing and terms

Tighter controls

Reduce Non-PO invoices

Reduce Maverick buying

Support SOX compliance

** Numbers based on aggregated market insight

Agenda

1. The need to optimize the cycle

2. Value proposition of SAP invoice management by open text

3. Achieving results with SAP

4. Summary

© SAP 2008 / Page 19

The bottom line

The ability to control and anticipate

Comprehensive overview of all invoices across the corporation

Increased control of time-to-payment

Allows for better cash usage based on comprehensive insight

State-of-the-art shared services delivery platform

SAP architecture enables leveraging economies-of-scale

SAP automation improves efficiency in administrative processes

Invoice automation powers financial transformation

Automates labor-intensive invoice reception and reconciliation

Frees line operations from finance administration work

© SAP 2008 / Page 20

Please use the chat window for questions

Thank you!

© SAP 2008 / Page 21