invoice automation webinar 1 quality of procurement official 2
TRANSCRIPT
Webinar - Why accurate procurement data is critical to invoice automation1
Why accurate procurement data is critical to invoice automationTommi Kouhi Tobias Wikström
2.11.2016
Confidentiality Webinar - Why accurate procurement data is critical to invoice automation2
Agenda
• Introduction Invoice Automation in OpusCapita’s offering
• Why accurate procurement matters for Invoice Automation?– Top performers– Five key points for successful invoice automation– Purchases and the correlation to invoice processing
• Examples of errors sources
• Three practical examples – Procurement and invoicing working together!
• Closing remarks
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OpusCapita by the numbers
Company:
• Founded 1984
• Over 2100 employees
• Revenue €257 million (2015)
Buyer-Supplier Ecosystem:
• 8 000 customers in over 100 countries
• ~100 000 suppliers
• 600 million transactions annually, 200 million processed purely electronically
• 40 million different products bought and sold
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OpusCapita: Extended Purchase-to-Pay
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Why accurate procurement matters for Invoice Automation?
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Poll 1 - How well are your activities in accounts payable aligned with the activities of your procurement department?
• We have none or low level of cooperation
• We have some level of cooperation
• We continuously operate together
• We are fully streamlined and prioritized
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What is the value of an efficient Accounts Payable process?
2.5xfaster
89%Increased
Source: The Hackett Group & OpusCapita Analysis
60%lower cost
cooperation
Best-in-class organizations look like this
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Five key points for successful invoice automation
Get your free copy: http://www.opuscapita.com/whitepapers/5-key-points-for-successful-invoice-automation
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Are we consistently using Purchase Orders?What to do with maverick spend?
Can we improve data quality by increased usage of e-invoicing?
Increasing automation with: “No-PO, No-Pay policy”
Are our invoice approval policies consistent across the company?
How to align the targets throughout the P2P process?
Control & visibility
2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation
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Purchases and the correlation to invoice processing
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3-way match and possibility to apply tolerance limits and manage extra costs
(e g freights)
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POLL 2 – Indirect purchases
• We don’t have any eProcurement system in use.• Some of the indirect purchases are done via eProcurement system.• All (or almost all) indirect purchases are done via eProcurement system.
Do you have any purchasing system for indirect purchases in use?
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POLL 3 – Unmatched invoices
• POs are missing.• POs exists but GRs are not done.• Price differences.• Extra costs on invoices.• Misinterpretation on invoice data.• Other reason.
Which are the main reasons why invoices doesn’t match against POs/GRs?
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Click icon to add picture
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Three practical examples
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Invoice fully matched against matching items
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Invoice matched automatically, initial state
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Invoice matched automatically, invoice matched
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Invoice matched automatically, postings from the matching items
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Price difference when matching an invoice
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POLL 4 – Price difference
• We allow the price differences if it is in tolerance and match the invoice.• We always send an invoice with price difference for manual matching to purchaser or
orderer.• We update the correct prices on the POs and generate new matching items for invoice
matching.• Other.
How do you handle invoices with price differences?
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Unit price difference on invoice vs. matching item
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Unit price difference on invoice vs. matching item
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Extra costs on invoice
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Shipping cost on invoice
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Approve extra costs within tolerance automatically
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Click icon to add picture
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Closing remarks
http://www.opuscapita.com/events