esker - paper-free ap with sap solutions
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8/6/2019 Esker - Paper-Free AP With SAP Solutions
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Paper-Free AP
with SAP Solutions
Auomad Pocingof Vndo Invoic
www.eser.com
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esker
Introduction .......................................................................................................................................................................................3
Executive Summary .........................................................................................................................................................................4
Challenges in Accounts Payable ................................................................................................................................................5
What is the problem? ...........................................................................................................................................................5
How big is the problem? .....................................................................................................................................................6
How valuable is the solution? ............................................................................................................................................6
Overcoming the Challenges .........................................................................................................................................................7
Productivity, fnance and vendor relationships............................................................................................................7
Accounts Payable Automation ....................................................................................................................................................8
How it wors ............................................................................................................................................................................8
Reporting an metrics .........................................................................................................................................................8
Automate process overview ...........................................................................................................................................9
Attributes of Eser solutions ..............................................................................................................................................10
Key benefts ..........................................................................................................................................................................11
Software as a Service for AP automation.....................................................................................................................11
Implementing the Solution in Phases .....................................................................................................................................12
Automate at your own pace ...........................................................................................................................................12
About Esker ......................................................................................................................................................................................15
Table of Contents
whIte PAPer
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esker
evy buin a o pnd mony o ma mony. Paying bill alo co no only mony bu alo valuabl im in
pocu-o-pay cycl. Bu i voluion of cnology o auoma Accoun Payabl documn poc, i coom compani mo an o.
rac by t hac Goup a found a op-pfoming compani poc a ig pcnag of vndoinvoic lconically in compaion i i p. Buin cogniz valu of auomaing Accoun Payabland are increasingly eager to gain the efciencies that automation brings. Recent research by Aberdeen Group founda mo an alf of oganizaion uvyd ay Accoun Payabl i agic up fom 40% in 2006. t Iniu ofManagmn and Adminiaion (IOMA) po a majo div fo implmnaion of auomad Accoun Payablare large transaction volumes, pressures to reduce costs, and impact on cash ow.
How much oes an invoice really cost?
wil sAPerP oluion mpo buin i Accoun Payabl funcionaliy and anacion daa, manual pocingof vndo invoic main andad pocdu and a bai o buin poc impovmn and un on invmnin npi ofa fo many compani.
Buin unning sAP oluion ill mploy convnional pap-divn Accoun Payabl poc. A a ul, y alimid in i abiliy no only o minimiz p-invoic co bu alo o impov poduciviy, pvn duplica invoic anda advanag of fa-paymn dicoun. Financial planning, vndo laionip, mploy poduciviy, in-npicommunicaion and vn gulaoy complianc ffo may uff fom lac of auomaion in Accoun Payabl. Byondsignicant cost savings, organizations using an automated Accounts Payable system can realize efciencies throughout poc fom daa ny o aciving.
ti pap pn uniqu valu of a compniv plafom oamlin Accoun Payabl poc a un on pap documn a lvl anging fom baic qui pap oluion o oucl poingof invoic and full poc auomaion. I analyz callng facdby compani oday o a ill uing manual pap-divn poc,a ll a oucom of auomaing poc including im,
labo and co aving a ll a incad viibiliy.
Abov all, i pap i dignd o ai CeO, CFO, CIO, AccounPayabl manag and sAP ym adminiao in laning, planningand valuaing auomad vndo invoic pocing ingad iSAP solutions for increased efciency in todays competitive business
nvionmn.
3
Introuction
If your company has ever
found it difcult to answer vendor questionsabou invoic au
paid am invoic ic
mid ou on fa-paymn dicoun
uggld o ga audi infomaion
o mad an inaccua ca foca
then you know the value of AP automation.
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Accounts Payable challenges
What automation aresses
ky iu facing Accoun Payabl opaion oday includ:
Time o poc vndo invoic and o payabl
Errors an elays affecting the accuracy of nancial statements
Visibility to see whats happening with Accounts Payable documents
Cost conol and avoidanc
Security and gulaoy compliance
Performance improvement drivers
Where to focusImmediate and signicant outcomes can result from focusing on:
Poduciviy in Accoun Payabl dpamn
tanacion co conol and avoidanc
Financial managmn and complianc uppo
scuiy and i conol
supply cain and vndo laionip
Document process automation as the solution
Enterprise-wie ROI
Addiional valu byond Accoun Payabl i availabl fom a compniv plafom o:
Capu y infomaion uc a vndo numb, poduc pa numb, du da, and puca od numb
Present data for modication and validation in a web-based interface or use touchless processing
Aciv daa and documn fo ay acc
Dliv ougoing documn uc a puca od and cuom invoic
ta a pad appoac o implmnaion
Software as a Service (SaaS) options
Automation on eman
wy coo a saas oluion?
rapid dploymn
ric funcionalii
Lo co
Lo i
No It invmn
4
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Executive Summary
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What is the problem?
A i any buin poc a li on documn ic av adiionally bn pap, painful poc unthroughout the procure-to-pay cycle. Research by PayStream Advisors has found signicant concentration in four keyaa of Accoun Payabl: invoic cip, daa xacion, invoic macing and xcpion andling, and appovalworkow. The core problem is that these steps rely on paper and people. AP departments relying on manual processes arending that adding staff does not solve the inherent problem. Manual processes are not only expensive and inefcient;
y alo inca canc of o and xpo oganizaion o many i.
ISSUE IMPACT
Invoice processing cycle time
Dlay in poing xpn wa of ca: inabiliy o capu aly paymn dicoun, la paymn
pnali
Damagd laionip i uppli
No automatic valiation Ovpaymn fo billing o Duplica paymn tax o
Lac of process visibility
Difculties in budgeting, planning and forecasting
Lac of conol and ig i impacing audi andad complianc Callng fo accua and on-im cloing Difculties in responding to vendor invoice status inquiries
Invoice processing costs Invoic dipu oluion excpion andling ecalaion and appoval of poblm invoic
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Challenges in Accounts Payable
PROCESSRECEIVE POST
Time
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Invoice processing cycle time
Although invoices start as electronic documents, they end up as paper on someones desk. The result is that they takelong o poc an y ould if y maind in lconic foma. t uling dlay in pocing av a ngaivimpac on abiliy o a advanag of vndo dicoun fo aly paymn.
No automatic valiation
ri of o i inn in any poc a involv pap and manual daa ny. In Accoun Payabl, i dmandpaicula anion no only bcau of impac on oing capial, bu alo bcau Accoun Payabl anaciona ubjc o cuiny by xnal audi fo gulaoy complianc. Any poblm in coding invoic a liabilii,particularly when the invoice is not associated with a purchase order, can result in inaccurate nancial statements andvn allgaion of faud.
Lac of process visibility
Accoding o Abdn Goup ac, op-pfoming oganizaion a 43% mo lily an i p o aventerprise-level visibility into Accounts Payable processes. Companies lacking such visibility encounter difculty in assessing
operations and developing strategies for process improvement. Lack of visibility is also a signicant contributor to transactionco and cycl im.
Just as automated entry of vendor invoices is essential for process efciency and quality assurance, data on invoicedocumn pocing i cucial o daily opaion. Fo xampl, vndo inquii fqunly ca nd fo infomaionabou pocing au of an Accoun Payabl anacion. Quic acc o infomaion on an invoic abeen received, processed, or paid (as well as data on the currently responsible agent) can signicantly reduce turnaroundim of vndo inquii.
Invoice processing costs
t co of pocing vndo invoic i gnally ig. I i vn mo impoan fo mall invoic, a co of olvingan iu may b ig an valu of invoic ilf. Abdn Goup udi o a manual invoic pocingco bn $13.00 and $15.60 p invoic vu $8.60 o $9.00 fo lconic invoic.
How big is the problem?A a mau of cop of iu, cn Abdn Goup ac a found a pap main main fomafo vndo invoic pning 80% of all invoic. evn a sAP oluion av cnalizd and andadizd many ybuin poc, Accoun Payabl main inundad i pap.
Aberdeen Group research has characterized Accounts Payable functions lacking automation as inefcient and weigheddown by paper. Still, despite compelling transaction cost savings and other strategic benets, most enterprises have not
automated Accounts Payable to any signicant degree.
How valuable is the solution?
Accoding o t hac Goup, incaing volum of lconically capud invoic lin im o 80% can:
Increase on-time payments by 7% Reuce process cost per invoice by 59%
Increase early payment iscounts by a factor of more than 3
Procure-to-pay value
When the solution is part of end-to-end automation in the procure-to-pay cycle, The Hackett Group nds signicantly lower
anacion co among op-pfoming compani an i lo-pfoming counpa. rducion of nd-o-nd co can b a ig a 92%, uling in aving of $2$3 million fo avag oganizaion.
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Productivity, finance and vendor relationships
Auomad Accoun Payabl pocing lp oganizaion ffcivly add callng of impoving poduciviy andtransaction cost reduction, nancial management and risk control, and s vendor/supply chain relationship management.Folloing i a ummay of auomaion oucom in aa.
Prouctivity
rmov manual oing and andling of invoic
spd up daa ny
Remove transportation costs from local ofces to headquarters and back
Minimiz co of pyical aciving of invoic
samlin communicaion o olv xcpion and dicpanci
Monio individual AP pciali pfomanc
Idnify poblmaic uppli
Impov AP vic lvl o o dpamn
Inga lconic invoic ino xiing poc
Financial management
Improve visibility of expenses (approval and/or payment)
Impov abiliy o a advanag of aly paymn dicoun
suppo gulaoy complianc ffo (saban-Oxly, c.)
Conol acual m of paymn and complianc i gulaion
Conol cdi iuaion and poc cdi aing
Improve nancial statements closing process
rduc i of duplica paymn
Enable cash ow forecast Unify Accoun Payabl pocing and xcpion acing
Quicly pond o audio (innal o xnal) qu
Venor relationshipmanagement
samlin communicaion o andl xcpion and dicpanci
rduc uppli complain and inquii
Improve response time to answer suppliers inquiries
Idnify poblmaic uppli
Pay uppli on im
Idnify and olv billing dipu quicly
Avoid cdi old iuaion a may impac buin
rduc numb of invoic quy call fom uppli An uppli quion immdialy
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Overcoming the Challenges
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How it works
Ingad i sAP applicaion and quiing no cuom pogamming, e oluion auoma vndo invoicpocing fom cpion of oiginal documn o uling caion of a coponding buin documn.The workow includes automatic and human validation of the data as well as document archiving. Full customization
exibility lets you:
Automate the creation of venor invoices, including poing and paing capabilii. Fo invoic and cdimmo iou a puca od, u can pcify if a cdi mmo o invoic ould b cad. O invoicare created in relation to an existing purchase order can ow into the SAP system without user intervention.
Archive the original ocument fo la fnc, i on e v o an xnal ym.
Daa uc a vndo numb, puca od numb and du da fo ouing and indxing a capud n a fax,email, paper or electronic invoice arrives. No predened templates are needed. The Esker solution checks the extracteddaa o dmin if invoic i aociad i a puca od.
PO invoices Materials Management (MM)
sAP ma daa i compad i invoic and puca od. If i a pfc mac, anacion canb auomaically n oug o sAP ym (oucl pocing). Daa i auomaically capud uing inlligntechnology offering accuracy and exibility that is superior to basic OCR and template-based capture, completelyliminaing manual daa ny. t oiginal invoic imag i auomaically od fo la ac and ival.
Non-PO invoices Financial Accounting (FI)
Fo invoic a do no mac up i a puca od, e oluion can pfom ncay xcpion andling,uc a ccing o i invoic i a duplica, if a any dicoun a can b applid fo fa paymn o if invoic nd o go oug an appoval poc. Coding may b don, i inid o ouid of accouningdepartment, at this stage. If any additional approval is required, the invoice can be transferred through the ofcelconically o a you no xacly i i in appoval poc and i g o ig popl, g ncayappoval o gna infomaion in sAP ym o boo paymn a quicly a poibl.
With or without a PO
tougou poc i MM o FI invoic, vy acion an i documnd and audiabl. Invoic daa anddocumn imag a lconically anfd ino e aciv o a paa aciving oluion, i a lin bac ino sAP applicaion.
In dliving advanag of Accoun Payabl auomaion, e povid a ool fo accua and on-im accounbooing, ffciv pocumn managmn i on-im vndo bill lmn, invoic validaion and auomadapproval workow. Accounts Payable departments gain the ability to track and closely monitor each step of vendorinvoic pocing. Combind i vail u ig managmn fau in e oluion, capabilii alolp compani comply i gulaion uc a saban-Oxly Ac.
Reporting and metricsrpoing ool mpo Accoun Payabl manag and ponnl o monio volum of invoic pocd by Ftep day, pli bn MM and FI invoic, avag im o poc an invoic and o ky Pfomanc Indicao.w a company u cnology o mov om o all uman invnion fom vndo invoic pocing, auomad poc off diinc advanag i lconic copi of invoic adily availabl o any auoizdperson within the company without having to go through physical les.
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Accounts Payable Automation
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Automated process overview
1. Invoices are sent to the Esker platform and processed according to predened rules matched to invoiceaibu uc a uppli, amoun, buying niy, c. scannd o lconic documn a capud andcan b auomaically oud and pioiizd.
2. t e oluion xac lvan invoic infomaion uc a company nam, invoic numb, du da andlin im dail. Capud daa can b auomaically ccd uing 2-ay o 3-ay macing again anxiing puca od. If a no xcpion, oucl pocing can ca invoic fo paymn
iou nd fo u validaion. Invoic iou a PO can undgo muli-lvl vi, coding and muli-lvl appoval.
3. If an exception such as price/quantity mismatch occurs, the invoice can be blocked for payment pendingvalidation and approval via an electronic workow that can be set up to go through one or several users.
4. Invoic infomaion i mad availabl o sAP applicaion, and documn imag i auomaically indxdto SAP Content Server, the Esker server or another archive. Users can be notied of invoice entry and status.
5. t oiginal invoic imag i adily availabl fo fnc a ndd.
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Without PO
Data& Image
Transfer
PROCESS AUDIT TRAIL
AUDIT TRAIL AUDIT TRAIL AUDIT TRAIL AUDIT TRAIL AUDIT TRAIL
With PO TOUCHLESS PROCESSING
MULTI
LEVEL
APPROVAL
MULTI
LEVEL
REVIEW
ROUTING PRIORIZATION
DATA CAPTURE
Paper invoice Fax E invoice EDI, XML
CODING
DOCUMENT
CAPTURE
Any format
Automateddispatch
Prioritizing
INTELLIGENT DATA
EXTRACTION AND
VALIDATION
Extract relevantinvoiceinformation
Coding
3 way match
EXCEPTION
HANDLING
Duplicate
Price/quantitymismatch
Block/forward forapproval or furtherprocessing
PAYMENT
APPROVAL
Electronicapproval
Multi level asrequired
1 2 3 4 5
INVOICE CREATION
AND DOCUMENT
ARCHIVING
Invoices arecreated free orblocked for
payment
Original document
imageindexed
110101000
100111010
001010100
101001110VENDOR
INVOICESAP
APPLICATION
MATCH
DO NOT MATCH
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Attributes of Esker solutions
In aing agic valu of Accoun Payabl auomaion, e cuom idnify a ang of buin and cnicalfau a igligd in folloing abl.
BUSINESS IT
A copoa plafom fo mulipl poc, includingpocumn ingaion
A u npi oluion i uppo fo advic and cnologi uc a cluing
Povn dploymn oldid
B-pacic implmnaion modology andpoc-focud appoac
Minimal donim
One-step validation and reconciliation/posting
Web workow allowing users to validate and approve
invoic oug sAP infac
Capabiliy o xnd oluion o pocumn fo
nd-o-nd pocu-o-pay managmn
Auomaic coding and ax allocaion
Auomaion of ad and lin im daa validaion
Auomaic duplica invoic cc
expn coding accuacy and auomad GL policy-bad coding of invoic
Goods receipt-based invoice verication
Quaniy and pic vaianc managmn
Plannd and unplannd dlivy co uppo
tacing and poing capabilii o monio invoicpocing acivii
SAP-certied integration and more than two decades
of xpinc
Fi i npi sOA agi
Lvag of andad sAP cnology o ma invoicdaa and paymn infomaion availabl o sAPapplicaion
Archiving exibility
On-p documn validaion and conciliaion
capabilii
Web-based workow outside of the SAP system
Exception handling and payment approval workow
notication
Auomad invoic macing, including 3-ayverication of PO (MM) invoices
Non-PO (FI) invoice handling nancial posting
elconic indxing and aciving of oiginal documnimag fo ay ac and ival
Lin o acivd documn availabl dicly fomsAP anacion cn
Invoice entry notication and warning when
unprocessed orders are sitting for too long in someones
a li
Out-of-ofce management
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Automate at your own pace
e oluion nabl a pad appoac o implmning auomaing Accoun Payabl pocing. Fo companiwho mainly want to get rid of paper, the rst phase makes copies of invoices readily accessible. The intermediate phase
leverages data capture technology to make the invoice archiving and indexing process even more efcient. And the thirdphase adds approval workow capabilities to automate vendor invoice processing from end to end.
Level A: Quit paper
Invoic daa i manually nd ino sAP ym
Indx infomaion i manually yd ino e b clin
A cannd imag of invoic indxd and acivd lconically fo ay ival
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Implementing the Solution in Phases
Invoice Invoices
are scanned
Popup
Based on externaldata information
(email subject, etc.)
Email notificationto AP specialist
1. AP specialist enters invoice in SAP system2. AP specialist keys-in indexes for the
corresponding image in Document Manager
Message:Invoices to
validate
- Vendor name- Vendor #- Invoice # (SAP)- Invoice # (vendor)- Invoice date- Total amount- Currency
ROUTING
Approve
Invoiceimage
Esker on Demandelectronic
archiveIn the Document Managerindexing form, AP specialistselects "Approve" to archiveinvoice in Esker on Demand
Email notificationto AP specialist withImage Archive link(embedded link)
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Level B: Automate ata capture
Invoic a cannd and pu oug conn-bad Dynamic Documn Capu
Data is automatically extracted and veried
Daa i mad availabl in XML i invoic imag, o no addiional daa ny i ncay
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Split invoice
batch
Invoice Invoices
are scanned
Popup
Based on vendor name
and invoice amount
ROUTINGFULL TEXT OCR
VERIFICATION & CODING
Email + TIFF invoicesas attachments sentto an AP on Demand
email address
AP Specialist appliescoding, enters GL
accounts and cost centers
in the Document Manager
AP specialist splits invoicebatch using web based
splitting tool in theDocument Manager
OCR enginereads image andextracts fields:
Line detailsVendor nameTotal
Email notification
to AP specialist
Message:Invoice to
validate
Email notification toAP specialist with image
+ embedded ink
Invoceimage
Invoice image
archived and indexedin Esker on Demand
archive EOD electronicarchivng
Teachingpossible
if needed
XML file of invoice ismade available for
upload into SAPsystem
INTEGRATION & ARCHIVING
SAPApplications
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Level C: Process automation
Invoic a auomaically pocd fom cip o poing
Approval workow to SAP application entry and archiving
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SAPAppications
Split invoicebatch
Invoice
Invoice is
released
for payment
Invoices
are scanned
Popup
Popup
Based on vendor name
and invoice amount
ROUTINGFULL TEXT OCR
Emal + TIFF invoicesas attachments sent
to an AP on Demandemail address
AP specialist to validateinvoice, enter GL account
and cost center in theDocument Manager
XML file of invoice ismade available as an
attachment to an email
sent to SAP system
Email notification
to approver #1
If approved
AP specialist splits nvo cebatch using web based
splitting tool in theDocument Manager
OCR engine
reads image andextracts fields
Line detailsVendor nameTotal
Emal notificationto AP specialist
MessageInvoice to validate
Ema l notification to
AP specialist with image+ embedded link)
Teachingpossible
if needed
Esker on Demandelectronicarchiving
Approver #1 to approve invoice paymentin the Document Manager
Approver #2 to approve Invoicepayment in the Document Manager
Popup
XML file of paymentapproval is made available
as an attachment toan email sent to SAP system
SAPApplicatons
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About Eser
Document process automation leadership
e i a cognizd lad in lping oganizaion limina manual poc, gain viibiliy and conol, and duc use of paper by automating the ow of documents into, within and out of the organization. With its comprehensive platformand pand cnology, e dliv advanag of auomad documn pocing i a a poful on-premise solution or as an on-demand services (SaaS) leveraging Esker-hosted infrastructure. Customers achieve signicant
and immediate operational efciencies, cost savings and measurable ROI in as little as three to six months.
As an established SAP software solution partner with certied integration, and an SAP customerilf, e a mad ving nd of sAP cuom a op pioiy. t ul of sAP ande panip a dmonad aound old by sAP cuom o av auomaddocumn poc i e oluion. e a a ddicad r&D am focuing on sAPapplicaion, and a pimay objciv o off sAP cuom b oluion fo documnpoc auomaion.
Foundd in 1985, e opa globally i mo an 80,000 cuom and million of licnd u. e a globaladqua in Lyon, Fanc and U.s. adqua in Madion, wiconin. Fo mo infomaion, vii ..com.
Solutions
Procure-to-Pay an Orer-to-Cash an Automation
to lp oganizaion qui pap and pd ca convion, nanc cuom aifacion, impov upply cainperformance, and increase protability, Esker solutions span the procure-to-pay and order-to-cash cycles:
Sales Orer Processing o auoma ny and ouing of incoming cuom od
Accounts Receivable Invoicing o auoma dlivy of bil ling documn bad on cuom pfnc
Accounts Payable Processing o auoma ny and ouing of incoming vndo invoic and o payabl
E-Purchasing o auoma dlivy of upply cain documn bad on vndo pfnc
E-PURCHASINGSALES ORDER PROCESSING
ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE
Your VendorsYour Customers Your Company
CustomerOrder
CustomerInvoice
VendorInvoice
PurchaseOrder
Payment Payment
ORDER-TO-CASH PROCURE-TO-PAY
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2009 e s.A. All ig vd. e and e logo a gid adma of e s.A. in Unid sa and o couni. sAP i gid admaof sAP AG in Gmany and in val o couni.
WORLdWIdE ESkER LOCATIONS
Aia ..com.g
Aualia ..com.au
Fanc ..f
Gmany ..d
Ialy ..i
spain ..
Unid kingdom ..co.u
MAdISON, WISCONSINU.S. HEAdQUARTERS
e, Inc.
1212 Dming waysui 350
Madion, wI 53717
tl : 608.828.6000Fax : 608.828.6001
email : info@.com
www.eser.com
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