Improving the Accounts Payable Process making Accounts Payable pay off

Improving the Accounts Payable Process (…making Accounts Payable pay off!) Friday, September 30, 2005 Confidential - Digital Storage Solutions Today’s Agenda l l l 8:00 AM-8:30 AM Breakfast & Conference Registration 8:30 AM-8:45 AM Improving the A/P Process?? What’s to improve? 8:45 AM-9:15 AM Reducing Manual Data Entry Costs with Information Capture 9:15 AM-9:45 AM Improving the Flow of A/P Information through the Organization 9:45 AM-10:15 AM Putting it all Together – Effective A/P in Action 10:15 AM-10:30 AM Delivering The Value – How to improve YOUR A/P Process l l l Friday, September 30, 2005 2 What are an A/P Manager’s Concerns… l l l l l l Increasing departmental efficiency Reducing operational costs Increasing data entry accuracy, reducing errors Reducing invoice processing cycle Prioritization of Invoices Providing Timely and Relevant reporting to upper management Ensuring Audit Compliance l Friday, September 30, 2005 3 Improving the A/P Process Cost to Process Invoices l Do you know what it costs your organization to pay an invoice? $15.00 $14.97 $14.50 $14.00 $13.50 $13.00 $12.82 $12.50 $12.00 $11.50 2002 2004 Average Cost to Process Vendor Payments -Source: IOMA Friday, September 30, 2005 4 Improving the A/P Process Time to Process Invoices Are your payment cycles keeping up with Industry Averages? 6.80 6.80 6.60 6.40 6.20 6.00 6.00 5.80 5.60 2002 2004 Average Days to Process Vendor Invoices -Source: IOMA Friday, September 30, 2005 5 Improving the A/P Process Reducing Payment Errors 1.4% 1.4% Additional Concerns: l 1.2% overpayments duplicate payments payments to incorrect vendors missed discounts late fees misappropriation of assets 1.0% 0.9% l l 0.8% 0.6% l 0.4% l l Best-Practice Average 0.2% 0.0% Vendor Payments with Errors -Source: IOMA Friday, September 30, 2005 6 Improving the A/P Process Overall Productivity 160.00 150.00 140.00 120.00 100.00 80.00 60.00 40.00 28.00 20.00 0.00 Average W/ Automation Invoices Processed Per Hour -Source: IOMA Friday, September 30, 2005 7 The Value of Accounts Payable With automation, visibility, and control of the A/P process, organizations have the ability to realize significant benefits: reduced A/P cycles, streamlined efficiencies, enhanced accountability and optimized corporate performance. Friday, September 30, 2005 8 Typical A/P Process Oversimplified fax, overnight couriers, etc. Cost Center Vendor Corporate Accounts Payable Cost Center with Accounts Payable Friday, September 30, 2005 9 Typical A/P Process - Part 2 Cost Center with A/P Receipt & Sorting Receive invoices at A/P department Sort invoices based on A/P departmental structure (State, Cost Center, Division, etc.) Send invoices to the A/P Representative responsible for processing invoices Perform more sorting or batching. Invoices may be stamped with date rec’d, annotated with GL Codes, etc. Vendor Cost Center Manual A/P Process A/P Rep keys invoices into the ERP system. Line-item matching may be performed on P.O.based invoices Perform batch edit reporting Correct entries as needed or proceed directly to releasing batches for payment Release batches for payment Perform check run Paper Filing & Retrieval Send invoices to temporary on-site storage Send invoices to longterm off-site storage Pull invoices for audits and various other business requirements Friday, September 30, 2005 10 How can we Improve Payables? Reduce paper handling Reduce labor Improve processing speeds Increase automation Say Good-Bye to Retrieval Time Never Miss a Discount Again Gain An Auditable Business Process Friday, September 30, 2005 11 Reducing Manual Data Entry Costs with Information Capture Friday, September 30, 2005 12 3 Tactics to Meet Your Needs l Image-Only l l Entry-level image archive (key index field) Improves Access and Retrieval Times and Costs l Automated Processing l l Automatic reading/indexing of header and footer data Reduces Manual Data Entry Costs l Automatic 3-Point Match l l Full integration with financial accounting systems Eliminates the need for Manual Processing Friday, September 30, 2005 13 Semi-Structured Data Capture Technology Invoice scanned Data Extraction run on image Dynamic, logic based search for data fields Automatic data extraction Vendor ID and data retrieved from ERP system Fields below confidence reviewed by operators Validation rules applied with exceptions flagged for workflow Data released to workflow, ERP, & Archive Friday, September 30, 2005 14 Ascent for Payables: Image Cost Center with A/P Receipt & Sorting Receive invoices at A/P department Sort invoices based on A/P departmental structure (State, Cost Center, Division, etc.) Send invoices to the A/P Representative responsible for processing invoices Perform more sorting or batching. Invoices may be stamped with date rec’d, annotated with GL Codes, etc. Vendor Cost Center Manual A/P Process A/P Rep keys invoices into the ERP system. Line-item matching may be performed on P.O.based invoices Perform batch edit reporting Correct entries as needed or proceed directly to releasing batches for payment Release batches for payment Perform check run Automated Archive/Retrieval PA/Per Filing & Retrieval AUTOMATED AUTOMATED Send invoices to longterm off-site storage Capture Send invoices to temporary on-site storage AUTOMATED Pull invoices for audits and various other business requirements Friday, September 30, 2005 15 Ascent for Payables: Image l l l l l l l Image-enables your A/P environment without increasing labor Automatically identifies the vendor, assigns a batch number and the date rec’d Delivers the image and data into your archive system Reduces manual invoice sorting and paper handling Enables electronic distribution and retrieval of invoices and documents without A/P assistance Minimizes on-site storage Invoice routing is possible with an image-enabled workflow Friday, September 30, 2005 16 Ascent for Payables: Process Cost Center with A/P Automated Sorting & Routing Receipt & Sorting Receive invoices at A/P department Vendor Capture Sort invoices based on A/P departmental structure (State, Cost Center, Division, etc.) AUTOMATED Send invoices to the A/P Representative responsible for processing invoices AUTOMATED Perform more sorting or batching. Invoices may be stamped with date rec’d, annotated with GL Codes, etc. AUTOMATED Cost Center Automated A/P Process Manual A/P Process AUTOMATED A/P Rep keys invoices A/P Rep keys invoices into the ERP system. into the ERP system. Line-item matching may Line-item matching may be performed on P.O.be performed on P.O.based invoices based invoices Perform batch edit reporting Correct entries as needed or proceed directly to releasing batches for payment AUTOMATED AUTOMATED Release batches for payment Perform check run Automated Archive/Retrieval AUTOMATED Send invoices to temporary on-site storage AUTOMATED Send invoices to longterm off-site storage AUTOMATED Pull invoices for audits and various other business requirements Friday, September 30, 2005 17 Ascent for Payables: Process l l l l l l l Advanced recognition technology minimizes keystrokes required to enter data Business rules automatically validate data and propel the images through the rest of your A/P process Makes A/P data available for ERP systems Automatically captures additional fields for indexing and payment Applies rules and logic for basic validations Populates archive/retrieval systems and image-enabled workflow simultaneously Use image-enabled workflow for approval routing, additional and more complex validations, and as middleware to ERP systems Friday, September 30, 2005 18 Ascent for Payables: Match Cost Center with A/P Automated Sorting & Routing Receipt & Sorting Receive invoices at A/P department Vendor Capture Sort invoices based on A/P departmental structure (State, Cost Center, Division, etc.) AUTOMATED Send invoices to the A/P Representative responsible for processing invoices AUTOMATED Perform more sorting or batching. Invoices may be stamped with date rec’d, annotated with GL Codes, etc. AUTOMATED Cost Center Automated A/P Process Manual A/P Process AUTOMATED A/P Rep keys invoices A/P Rep keys invoices into the ERP system. into the ERP system. Line-item matching may Line-item matching may be performed on P.O.be performed on P.O.based invoices based invoices Perform batch edit reporting Correct entries as needed or proceed directly to releasing batches for payment AUTOMATED AUTOMATED Release batches for payment Perform check run Automated Archive/Retrieval AUTOMATED Send invoices to temporary on-site storage AUTOMATED Send invoices to longterm off-site storage AUTOMATED Pull invoices for audits and various other business requirements Friday, September 30, 2005 19 Ascent for Payables: Match l l l l l l l Extracts an unlimited number of data fields Automatically matches PO’s with invoices Eliminates tedious, laborintensive data entry of line item details Captures header and footer fields, including line items Applies business rules for advanced validation routines Tightly integrates with host systems to enable active validations and lookups Fully automated delivery into ERP and host systems ensures that captured data is available immediately Friday, September 30, 2005 20 Utilizing Remote Capture to Save Costs Seattle, WA New York, New York Los Angeles, CA Chicago, IL Friday, September 30, 2005 21 Invoice Automation in Action lCostCenter Cost Center Automated Sorting & Routing Receipt & Sorting Receive invoices at A/P department with A/P Vendor Capture Sort invoices based on A/P departmental structure (State, Cost Center, Division, etc.) AUTOMATED Send invoices to the A/P Representative responsible for processing invoices AUTOMATED Perform more sorting or batching. Invoices may be stamped with date rec’d, annotated with GL Codes, etc. AUTOMATED lCostCenter Cost Center Automated A/P Process Manual A/P Process AUTOMATED A/P Rep keys invoices A/P Rep keys invoices into the ERP system. into the ERP system. Line-item matching may Line-item matching may be performed on P.O.be performed on P.O.based invoices based invoices Perform batch edit reporting Correct entries as needed or proceed directly to releasing batches for payment AUTOMATED AUTOMATED Release batches for payment Perform check run Automated Archive/Retrieval AUTOMATED Send invoices to temporary on-site storage AUTOMATED Send invoices to longterm off-site storage AUTOMATED Pull invoices for audits and various other business requirements Friday, September 30, 2005 22 ERP, Workflow, Content Management Friday, September 30, 2005 23 Is Paper Really the Problem? Managing corporate Accounts Payable Paperwork is an arduous and time-consuming process! 4.00 96.00 % Of Invoices Received by Paper vs. Other Methods (2004) -Source: ByLine Research, UK Friday, September 30, 2005 24 Improving the Flow of A/P Information through the Organization Friday, September 30, 2005 25 Information is Key to Effective Decision Making l Challenges: l l l l Documents initiate Accounts Payable Processes Documents accompany Accounts Payable processes Documents result from Accounts Payable processes ERP and Purchasing Systems often do not accommodate these Documents! l Solution: PaperVision for Accounts Payable l Integrates business documents into ERP business processes l l l Incoming Documents Outgoing Documents Print Lists / COLD Friday, September 30, 2005 26 Benefits of Document Management and Workflow Efficient Document Management and Workflow will: l l l Create an automated and efficient Approval process Provide immediate access to A/P information Deliver a secure work environment with integrated process control and management tools Friday, September 30, 2005 27 Creating an Automated and More Efficient Approval Routing Process l As invoices are brought into the imaging systems, they are electronically routed through the workflow engine to the appropriate AP manager for approval, eliminating the chance of lost documents or Invoices going to the wrong individual. l Every customer is different and the actual approval process can be customized to follow how you comfortably manage your AP process today. Friday, September 30, 2005 28 Providing Immediate Access to Information Necessary for Payment of Invoices l As a user logs into the document management and imaging system, they can easily see that there are invoices in their work-queue waiting to be processed. l Based on the login information given, security rules and rights to access of documents and work-queues are applied. Friday, September 30, 2005 29 Providing Immediate Access to Information Necessary for Payment of Invoices l Upon opening the workqueue a user will then be presented with an invoice that requires an action to be performed. l This user also has the ability to fax, e-mail, or route this document all from the desk top. Saving time by eliminating the manual handling of this document to perform these tasks. Friday, September 30, 2005 30 Providing Immediate Access to Information Necessary for Payment of Invoices l In this case a user had to make sure that the invoice conformed to company standards and that the invoice data had been captured and verified within the accounting system. l Once completed, the invoice will transition to the next work-queue for management level approval. Friday, September 30, 2005 31 Providing Immediate Access to Information Necessary for Payment of Invoices l A user can also search the document management systems for any other documents in the repository that may be necessary for the approval process. l Immediate access to this information allows for quicker invoice processing. Friday, September 30, 2005 32 Delivering a More Secure Environment with Better Process Control and Management l Documents are tracked through out the entire process. Additional functionality can provide improved control and management of the approval process. l In this case we have set time constraints on how long an invoice can remain in an AP Managers work-queue, before upper level management is notified, and the invoice is re-routed. Friday, September 30, 2005 33 Delivering a More Secure Environment with Better Process Control and Management l In view of the latest revisions to the Fraud Auditing Standards, and compliance issues related to SarbanesOxley, security and auditing capabilities are a must have. l An audit trail of “where” this invoice has been and “who” has done “what” with it, is simply a right mouse click away. Friday, September 30, 2005 34 Automated Accounts Payable lCostCenter Cost Center Automated Sorting & Routing Receipt & Sorting Receive invoices at A/P department with A/P Vendor Capture Sort invoices based on A/P departmental structure (State, Cost Center, Division, etc.) AUTOMATED Send invoices to the A/P Representative responsible for processing invoices AUTOMATED Perform more sorting or batching. Invoices may be stamped with date rec’d, annotated with GL Codes, etc. AUTOMATED lCostCenter Cost Center Automated A/P Process Manual A/P Process AUTOMATED A/P Rep keys invoices A/P Rep keys invoices into the ERP system. into the ERP system. Line-item matching may Line-item matching may be performed on P.O.be performed on P.O.based invoices based invoices Perform batch edit reporting Correct entries as needed or proceed directly to releasing batches for payment AUTOMATED AUTOMATED Release batches for payment Perform check run Automated Archive/Retrieval AUTOMATED Send invoices to temporary on-site storage AUTOMATED Send invoices to longterm off-site storage AUTOMATED Pull invoices for audits and various other business requirements Friday, September 30, 2005 35 What are an A/P Manager’s Concerns… l l l l l l Increasing departmental efficiency Reducing operational costs Increasing data entry accuracy, reducing errors Reducing invoice processing cycle Prioritization of Invoices Providing Timely and Relevant reporting to upper management Ensuring Audit Compliance l Friday, September 30, 2005 36 Return On Investment Example Friday, September 30, 2005 37 Bringing it all together… AP Automation can help your company to: · Minimize Invoice Processing Time · Improve Cash Management · Reduce Labor Costs · Reduce Retrieval Time · Gain an Auditable Business Process · Share Information and Promote Collaboration · Optimize Corporate Performance Friday, September 30, 2005 38 Thank You! For More Information Please Contact: Tom Doyle President Digital Storage Solutions 631-435-2900 ext 20 tdoyle@paperfreedom.com Friday, September 30, 2005 39