Standard Invoice management without media discontinuity

Transcription

1 Whitepaper Purchase-to-Pay Solution Standard Invoice management without media discontinuity

2 Current situation In Germany there are about 2 billion invoices created a year. These invoices get sent to the, receipient, entered, checked, processed and paid. In Europe there are approximately 30,000,000,000 invoices per year. Research and our experience show that processing invoices manually costs between Euro 10 Euro 20 per invoice. That is why automated invoice processing can reduce processing costs for the receiver significantly. Implementing and using a seamless end to end invoice process without any media breaks allows improving process efficiency, decreases cycle times, and increases process quality and transparency. Significant savings potentials when processing invoices lying in the process step of entering an invoice. Performing the invoice entry automatically by using an OCR component allows under certain circumstances not even to enter an invoice but posting it automatically. Assuming the savings potential is about Euro 10 per invoice when processing invoices in an automated way the total savings potential is about Euro 250,000 when you process hundred invoices per day. This example states clearly why many companies intend to increase efficiency in invoice passing recently. About 10 years ago SEEBURGER a customer focused company developed a solution to process incoming invoices, paper-based or electronic, in an automated way. Our solution is called Purchase-to-Pay. It helps you to automate and steam line your processes which can lead to cost savings of approximately 85 % in the Accounts Payable invoice processing area. Purchase-to-Pay Solution Whitepaper 2

3 Excellent Standard Purchase-to-Pay Solution Overview Purchase-to-Pay Solution processes all different types of incoming invoices for example paper-based telefax or electronic invoices equally and validates them against vendor master data, purchase order data and goods receipt data. Paper-based invoices are running through the OCR component right after scanning. Thereby these invoices are transformed into a digital format. EDI invoices arrived already in a digital format which is not easy to read by humans. Because of this Purchase-to-Pay Solution transforms EDI invoices into readable pseudoinvoices.purchase order related invoices without any variances in price quantity or goods delivered processed, validated and finally posted automatically by the system. For these invoices there is no manual interaction required. Invoices without the purchase order reference can be sent into a web-based approval workflow. Added value by standard functionality Gained experience of numerous projects in the invoice management area at SEEBURGER to define a standard solution, characterised by easy maintenance and configuration. Apart of solely automating invoice processes our standard solution comes out of the box with clear guidelines for purchasing and invoice approval. This allows decreasing the processing efforts for Accounts Payable clerks, approvers and purchasers etc. It can lead to it to invoices being processed and posted fully automated by the system. Reasons to use a standard solution Quick & easy implementation of a preconfigured solution Easy maintenance and feasibility for upgrades Continuous improvement of the solution by implementing feature requests Better monitoring functionality and transparency by avoiding individual and customer specific solutions The so-called SEEBURGER WEBflow allows in an easy way to implement an invoice approval workflow according to the two eyes principal or four eyes principle. For purchase order related invoices with price quantity mismatches SEEBURGER offers as SAP-based clarification workflows. Purchasers or purchasing group can be contacted within clarification workflows in order to solve the mismatches between the invoice and the purchase order within SAP. Purchase-to-Pay Solution Whitepaper 3

4 Invoice processing overview In addition automated invoice processing Purchase-to-Pay Solution offers you a book of invoices report that provides an overview about all different channels of incoming invoices. Channels as paper, PDF, fax are processed by using the OCR component combined with a freeform technology approach in order to transform the incoming invoices and electronic data. EDI data is automatically interpret by Purchase-to-Pay Solution and additionally transformed into format that is readable by humans. All invoices that past validations and post processing are transferred to the ERP systems for posting. Our solution is installed within SEEBURGER namespace. In SAP there are no modifications required within your SAP standard system. Because of using our own namespace there are no independencies between our solution and release updates of your SAP system, your SAP support, or new SAP releases. For non-sap users it is possible to approve invoices by using our WEBflow or the SEEBURGER Mobile SAP integration of mobile devices for approvals. SEEBURGER s solution covers and controls the entire invoice processing from scanning to posting of an invoice, the process monitoring and it records protocols of the entire process. SEEBURGER Incoming Invoice Process in Detail Individual Department Central inbox/ Distribution Invoice verification Background post./ Parking of invoice Approval process Posting/ Archiving Purchase-to- Pay Solution Document Entry Interpretation erp Workflow (SAP, WEB) ERP Activities Receive invoices Scanning OCR/Interpretation Validation Post Processing Learning function Data transmission Posting strategy Approval according hierachy Cost center assignment Final posting Monitoring Processing history/archiving Approval according correctness Purchase-to-Pay Solution Whitepaper 4

5 Invoice Processing in Detail Document Entry Document Entry Invoice Entry and Scanning Upon invoice receipt which can be organized at one central location or at multiple locations invoices and credit notes get separated for the scanning process. Staples and clips get removed Attachments to invoices that are not required get deleted Pages are inserted to separate one invoice from another Documents are aligned properly Document exceptions are sorted out Bar codes are applied on the first page of a multipage For the preparation of scanning batches it is important that the order of the pages of an invoice starts with the first and ends with the last page. If there is an attachment to an invoice it has to be separated from the invoice by using a special page for attachment separation. The scanning process can be performed in one central location or in multiple locations, assuming the required scan hardware and scan software is available. In order to achieve a sufficient scan quality of the documents OCR component requires at least the following key parameters regarding the scan hardware and the scan software: Resolution 300 dpi Format: multipage TIFF compressed or multipage PDF Black and White Usage of image optimisation Purchase-to-Pay Solution Whitepaper 5

6 Invoice Processing in Detail Interpretation Interpretation Optical Character Recognition (OCR) Before Purchase-to-Pay Solution starts the data interpretation, TIFF-files (e. g. multi-pages per fax/reception) or PDF files are processed by OCR software. Hand-written invoices must be manually entered by a user. To interpret international characters, SEEBURGER uses the standard FineReader from ABBYY converting invoice images including line item details into single characters. This FineReader software is coming from the market leader ABBYY who is the only third-party piece of software used by our solution, simply because nowadays standard technology like operating systems or databases is difficult to improve significantly. Of course that is impressive when the invoice management solution recognises and extracts data rapidly from paper documents. But if a document requires manual post processing it does not make a huge difference if the invoicing clerk corrects one or two fields. Much more significant improvements of the process efficiency can be achieved by implementing lean invoice approval processes. Many clients still approve a single invoice on three, four or even five different approval levels. Streamlining the invoice approval to a two-step approval process is the right way to approve invoices quickly and to optimise cash discounts. In contrast to other solutions, SEEBURGER utilizes ABBYY only to deliver a stream of single characters, no grouping into words, while the Purchase-to-Pay Solution Interpreter will group characters, create likely word hypothesis and finally identify values such as invoice number out of all the possible options. It is one of our key strengths that the interpretation engine, based on artificial intelligence rules, truly interprets the meaning of all those values extracted out of the document, optimized by our implementation experiences in several installations. Especially at the beginning of a project many clients put too much attention on the recognition rates of the OCR software. But usually the impact of the recognition rate on the efficiency increase of the invoice processing is rather low. Another big benefit of the invoice management solution is the automatic determination of users. This feature allows to trigger automatically workflows for clarification and approval in Purchase-to-Pay Solution without the need of manual post processing by Accounts Payable clerks. Standardisation and harmonization of processes, a process orientated organisation and automating processes with electronic workflow systems achieve the biggest benefits in cost savings and process efficiency. For these reasons it is less important if OCR software can make recognition rate of 85 % or 89 %. Even though or recognition rates we in our competitors talk about are not standardised. That means 85 % of supplier A is not equal to 85 % of supplier B. Purchase-to-Pay Solution Whitepaper 6

7 Interpretation Example: what does recognition rate of 90 % mean? Nine of 10 characters have been recognised correctly Nine of 10 fields on the invoice have been recognised correctly Nine of 10 invoice pages are recognised Nine of 10 invoices can be processed without manual intervention of the accounts payable clerk s The devil is always in the detail. Recognition rates are always rely strongly on the quality of the vendor master data. How can OCR software recognise the correct vendor if the master data of the vendor shows an incorrect VAT ID, his address is not maintained properly and the purchase order data in the ERP system shows pseudo prices or quantities that do not match to the invoice? Increasing the difficulty for the invoice management solution to determine the correct vendor automatically, duplicate vendors in your master data cause invoices to be corrected by Accounts Payable clerks. The following example illustrates the need for vendor master data clean-up: An invoice page consists of approximately 3,000 characters. Assuming an OCR rate of 99 %, approximately 30 characters per invoice page get recognized incorrectly. An invoice field consists of about 10 characters. Therefore the field detection rate is approximately 90 % ( =0.904). If 15 fields of an invoice need to be recognized correctly (invoice reference, vendor name, invoice amounts, dates, etc.) the recognition rate per page decreases to approximately 22 % ( = 0.221). This means that without smart validations (mathematically, range, format etc. and validation against the vendor master data, purchase order and goods receipt data) using recognition only, single page invoices can be recognized at a rate only 22 %. So the important question is to ask is rather how good the quality of the vendor master PO and goods receipt data is, rather than to ask how good the recognition rate of invoice management solution is. Optimization of vendor master data and clear purchasing policies can increase PO related invoices compared to non-po related invoices. Automated background posting of PO invoices then can rise up to over 50 % of all incoming invoices. Purchase-to-Pay Solution Whitepaper 7

8 Interpretation Interpretation and Validation The OCR results are processed by the interpretation component»interpreter«. Its technology is based on a freeform approach. Therefore, compared to the form-based interpretation, no vendor related templates, forms, etc. must be created by the user and trained to the system in order to achieve the appropriate interpretation results. The freeform approach is based on key words and relations in combination with an appropriate background knowledge which is basically vendor master data, purchase order data, goods receipt data and learning information, automatically created during invoice processing. A detailed description you will find in the chapter»freeform Technology«. Completely not or partially incorrectly recognized fields can not be considered as system errors as such. But they can occur under the freeform approach as a kind of fuzziness within the recognition process. Reasons can be OCR errors, unexpected geographical relations of other invoice information e. g. key words or similar. To evaluate, monitor and control the recognition results over a longer period within Purchase-to-Pay Solution you will find a statistical component which can report on individual field and document recognition rates and compare these over time. Thus, the recognition results at the header level are continuously put to the test and serve as a quality indicator. Purchase-to-Pay Solution can, certain indications required, automatically classify a document as e. g. an invoice, a credit memo, a subsequent debit or credit, an asset related invoice or a prepayment request. Of course, this classification can be amended manually by the user Purchaseto-Pay Solution, if required. For the interpretation of an invoice, invoice line items are recognized and validated next to the invoice header details. Invoice line item details are quantities, prices, etc. which then are matched if possible against (open) positions of corresponding purchase orders or goods receipt notes. Matching required a set of parameters to fit the invoice information e. g. price, position, amount, material number or delivery performed. The general interpretation rate depends mainly on the scan quality and the quality of the background data. These factors are beyond the control and responsibility of SEEBURGER. The following invoice example shows, highlighted in green, invoice information relevant to invoice validation. Through a learning process other invoice information (yellow) can be learned and enhance vendor master data, purchase order data and goods receipt data when validating invoices: Purchase-to-Pay Solution Whitepaper 8

9 Spareparts.co.uk City Hall 40 Abby road London, E1 1EE T F E [email protected] Registered No: VAT Reg: GB ISO 9001 Registered Sales Invoice Invoice To: SEEBURGER UK Ltd. Heathrow Boulevard Bath Road West Drayton Middlesex Ship To SEEBURGER UK Ltd. Heathrow Boulevard Bath Road West Drayton Middlesex Standard Learning Account No: Example Invoice No: Invoice Date: 14-Nov-2012 Page No: 1 of 1 PO No: , Delivery Note 3332/48956FF8 Delivery Date 12-Nov-2012 Our Ref Production Our Contact Nancy Hill T E [email protected] Your Ref FF-5200T Your Contact Paul Smith T E [email protected] Your Client No: Payment Due By: Terms 30 days net. Date Your References PO line item No Delivery Note Description Quantity Unit Price Surcharges Net VAT VAT Gross 02-0ct-2012 PO Line /48956FF Data Base Server 5 1, , % 1, , Oct-2012 PO Line /48956FF LAN Router % Oct-2012 PO Line /48956FF Hard Disks , % , Oct-2012 PO Line /48956FF LAN Cables % Oct-2012 PO Line /48956FF Widgets % Nov-2012 PO Line /48956FF Keyboards % Nov-2012 PO Line /48956FF RAID Controller % Total 10, , , All goods carried are subject to our Terms and Conditions available at All queries should be addressed to [email protected] within 14 days from date of invoice. If you are paying by BACS please use the following details: Bank: Bank of Ireland Account: Spareparts UK, Account No: Sort Code: Swiftcode: BOFIIE2D IBAN No: IE 42 BOFI Address: Bank of Ireland, P O Box 2386 Colvill House Talbot Street Dublin 1 Terms 30 days net. Purchase-to-Pay Solution Whitepaper 9

10 Interpretation Validation The scanned invoice information will be evaluated on the basis of complex validation routines. Implausible data require manual post processing within the Purchase-to-Pay Solution post processing center or is offered within ERP integration for post-processing. The following validation routines are carried out with Purchase-to-Pay Solution including through the standard functions: In order to automatically determine and validate the correct vendor of the invoice the Purchase-to-Pay Solution system matches the invoice against vendor data and purchase order data records. Any ambiguous vendor will be manually corrected in the post processing GUI. For purchase orderrelated invoices, the system checks whether the supplier specified in the invoice corresponds to the one specified by the order data. If the invoice issuing company is different from the one the PO has been set to, Purchase-to-Pay Solution will still identify that company (e. g. due to master data) and request that the user provides confirmation. Additionally Purchase-to-Pay Solution automatically identifies the bank account (IBAN number or the combination of bank code and account number) while reading the image and automatically match the information with supplier master data. If both are the same, then Purchase-to-Pay Solution will tag the invoice with a flag»bank account successfully checked«. The validity of invoice date is also checked (considering different format types for the originating country). Based on the current system date, the invoice cannot have a value indicating a date in the future and cannot exceed a configured past period of time (e. g. 42 days). If the interpreted invoice number contains OCR errors and master data is not available for automated verification, it is used as far as possible. If no number is given, this mandatory field has to be completed during the post processing phase in order to fulfill legal and compliance requirements. The interpreted order number has to match a number included in PO data of the ERP-System. Transactions without order number are automatically forwarded to the manual post processing phase. According to the configured accounting strategies, they may be manually accounted as»preliminary checked invoices«or passed to the verification & release workflow parked as»interpreted invoice header data«. The position number of the originating order is only rarely included in the invoice document, but can be detected with the help of references to additional position information (i. e. quantity, price, article, material code, delivery note number out of GR, etc.). Planned or unplanned delivery costs: Purchase-to-Pay Solution tries to automatically recognize any planned or unplanned delivery costs on header and item level (e. g. freight conditions, packaging costs, surcharges). Article number or material code at position level included in the invoice document: The corresponding number may be available on item level, but this is not mandatory. The user can validate the interpretation results against the ordered position reference. For the article number, no explicit plausibility check is done, but if available it will be used by the Purchase-to-Pay Solution Interpreter identifying the corresponding order position. Purchase-to-Pay Solution Whitepaper 10

11 Interpretation On each invoice position a delivery note number may be available, allowing validation of the interpretation result also against a booked stock receipt of the position. For this number, no explicit plausibility check applies, but it can be used by the Purchase-to-Pay Interpreter identifying the corresponding purchase order position. Herein, we do not describe the full scope of goods receipt related invoice checks in detail, though such functionality is included in the software. Goods-receipt-related invoice verification (GRIV): Purchaseto-Pay provides special treatment for purchase order related invoices during automated interpretation, not only matching invoice data with the order master data from the ERP, but even regarding the quantity of goods already received for an issued order. In doing this, Purchase-to-Pay Solution not only controls price or quantity differences but even the amount billed for in a series of invoices ultimately not exceeding the intentionally ordered amount of goods. All of these verifications essentially do require matching on item level, allowing for multiple purchase orders to be referenced within any given invoice. Quantity at position level within the document: An invoice position usually specifies the quantity. It can be matched against the ordered or open quantity. For purchase order procedures, the interpreted quantity is mandatory information within Purchase-to-Pay Solution. Single price specification at position level within the document: This information can automatically be validated against the ordered price for each position. In general, the interpreted single price is mandatory information. In each order position a price unit may be specified. The user may also manually validate the interpretation result with the ordered position reference. The sum at position level within the document: The sum may be specified at an invoice position. It generally represents the multiplication of the fields»quantity«and»single price«described above. In case of deviation (compared to the purchase order) within according tolerances previously configured in Purchase-to-Pay Solution, the invoice still can be accounted automatically. If the deviation exceeds the tolerance limits, the user has to resolve or confirm the deviation (assuming they have the permission to approve). The net amount of an invoice shows the total of the single position net amount, but it can also be calculated subtracting VAT amount from gross total. The VAT rate percentage is shown on the invoice for most countries, thus Purchaseto-Pay Solution also validates all recognized tax rates using a country-specific VAT tax table. Different tax IDs may even represent the same tax rate for identical country IDs. In such cases, the tax rate proposed is the one tagged as the default tax rate and may be manually adjusted. This also applies for mixed tax rates. Finally, Purchase-to-Pay Solution validates the invoice total amount against the net amount and calculated/recognized sales tax ratio. Terms of payment: Purchase-to-Pay Solution is configurable to read payment terms out of the invoice and compare them to master data payment terms. Then Purchase-to-Pay Solution suggest the one which is more favourable for the customer. For PO related invoices the system priority is to lookup the payment terms of the PO master data, while for non-po invoices the system uses payment terms as stored in master data for the supplier within the current company code. The posting date will be determined by Purchase-to-Pay Solution and may be modified by a user. The posting date is determined by certain rules, e. g. considering closed posting periods, etc. Further country-specific particularities will be considered by Purchase-to-Pay Solution such as the data field LZB-ID (»national central bank code«) being mandatory in Germany for vendors of foreign countries. Purchase-to-Pay Solution Whitepaper 11

12 Interpretation Post Processing After the OCR recognition and interpretation of invoice data using the freeform technology took place, and the validation of the header and line item data against the vendor master data, the purchase order and goods receipt data has been completed, the invoice will be posted automatically if no mismatches exist. But in case of OCR errors or discrepancies, the invoice is sent to manual post processing and further clarification. The Purchase-to-Pay Solution system provides for this task either A web-based and/or an SAP integrated post processing center. Because the main task during post processing is the manual error correction, this task can also performed by lower skilled staff without accounting knowledge. This leads to a significant reduction of process costs, which can be increased by the omission of a full SAP license for each post processing clerk which is not required for webbased post processing. The web-based post processing center, as well, as the SAP-based post processing center allow full access to the master and transaction data of the SAP system. In case an employee of the Accounts Payable team is in charge of the invoice post processing, the postprocessing can be performed within the familiar SAP environment, too. The layout of SAP-based post processing center is inspired from SAP transaction MIRO for invoices with purchase order reference and SAP transaction FB60 for invoices without purchase order reference. This alignment of the SEEBURGER SAP-based post processing center to standard SAP transaction helps to increase the acceptance of our solution by the Accounts Payable Team significantly. Purchase-to-Pay Solution Whitepaper 12

13 Interpretation Purchase-to-Pay Solution post processing is an application highly tuned to fulfil the needs of handling invoice documents allowing for the completion of much more information than shown on the invoice itself (e. g. accounting information, if desirable). This Java Web Start application automatically launches the current version from the main server. The»Lasso«drag & drop functionality is the main method used to handle recognition exceptions, thereby implicitly training the automated learning capabilities, which have already been explained in this chapter s introduction to Purchase-to-Pay Solution. Tool-tips with system messages providing the reason why a field is considered uncertain Drag & drop for correction of fields, using this Lasso to implicitly train the system Forwarding or postponing individual invoices integration for instant supplier enquiries (option to attach the invoice image) Instant validation of manual data entries against company data and policies Database look-up e. g. on master data for orders or suppliers by shortcuts The Variant Manager and the MM-Editor detailed below etc. The Purchase-to-Pay Solution post-processing screen works in split-mode allowing three options: 1. Include the image within the same dialog as the data fields verified, 2. Display the image in a separate window to be positioned independently and 3. Display the image on one screen and results on another screen if dual-display is supported by the Windows graphics adapter. Field navigation is enabled using the TAB-key or mouse positioning. The ergonomics of the GUI has been designed based on the principles derived from Prof. Dr. Linn towards DIN EN ISO The main objective was to create an easy-to-use, self-explaining user interface based on fundamental guidelines for human interaction Purchase-to- Pay Solution offers the user comprehensive post-processing functionality and assistance in ad-hoc communication with suppliers and internal departments, such as: In order to use the self-adapting mechanisms, exception handling should be made with the options provided by Purchase-to-Pay Solution. Alternatively you also have the option to perform corrections within the proceeding workflows or the ERP system, i. e. accounting of the invoice. Via a button the Purchase-to-Pay Solution post processing screen offers an integrated function which opens a new form within the default client and attaches the original invoice document as a PDF file. The invoices can thus be sent as information requests or notes to third parties (e. g. private purchaser or vendor). Purchase-to-Pay Solution Whitepaper 13

14 Interpretation Learning methods Automated learning methods Automated Learning Methods provide self-adapting capabilities which stabilize a high interpretation rate of the Purchaseto-Pay Solution Interpreter. They enable supplier-related and supplier-independent optimization of the classification and extraction results minimizing the effort related to invoice postprocessing and training of new fields. Self-adapting is not restricted to header level but does include several mechanisms on item level, as well. Superseded learning rules will be dropped over time, ensuring that the system is always up-to-date and not behaving poorly due to contradictions or decreasing performance. To the best of our knowledge, Purchase-to-Pay Solution is unique in the tremendous variety of such highly sophisticated learning capabilities. Purchase-to-Pay Solution enables you to understand the rules learnt in self-adapting and does not require a»reset«of its whole knowledge base (which is the case for some of the other solutions considered as being»competitive«). Freeform technology Being one component of our Paper-to-ERP offerings, Purchase-to-Pay Solution is optimized to automatically read contents out of paper-based invoices. In this context Purchase-to-Pay Solution is able to process invoices without the need to use templates as it is based on innovative freeform technology. It provides automatic artificial intelligence (AI) and OCR components continuously being improved by our development department, contributed by know-how transfers with an allied university research institution. By leveraging ERP and learning data during interpretation and validation of invoices SEEBURGER s Purchase-to-Pay Solution achieves excellent results for automated invoice entry. Purchase-to-Pay Solution Whitepaper 14

15 Interpretation This section summarizes several highlights of the solution. Purchase-to-Pay Solution is a true freeform solution even beyond what we call»third Generation«. First Generation was about freeform recognition for header data. Second Generation included table information of line item details. Third Generation already separates today s vendors by each of the subsequent requirements: Recognizing table items with varying line counts per item. Automatically determining the order of standard columns in a document. The software is able to automatically self-adapt in daily business on particularities of a supplier (without affecting other supplier s recognition). Purchase-to-Pay Solution goes beyond the capabilities of Third Generation Freeform recognition by delivering even greater technical functionality such as: Visibility: All recognition rules automatically learned by self-adapting are visible to key users with appropriate system permissions. You may even add, modify and delete such rules though you generally don t have a need to do this. Custom header fields self-adapting: Purchase-to-Pay Solution does not only allow for custom fields to be defined, the software includes a number of such fields in the automated interpretation. Customer table columns self-adapting: similar to header data, you may even define new columns in a table which will be interpreted automatically. Comprehensive use of all information available: reflecting customer s business logic as well as master data e. g. knowledge of goods-receipts. Leveraging global Roll-outs: resolving the typical Freeform need to»understand«foreign languages using automated concepts of learning a new country s particularities. Purchase-to-Pay Solution utilizes ERP master data during the initial step of interpretation. Such integration of master data in the earliest possible step of automation results in increased accuracy of result data and higher rates of fields which can automatically be confirmed both on header and table level. Purchase-to-Pay Solution Whitepaper 15

16 Invoice Processing in Detail ERP ERP InvoiceConsole for SAP R/3-Integration SAP R/3 provides a highly standardized architecture and interfaces to the system. SEEBURGER and SAP have an established partnership for more than a decade and both companies HQ s are located very close to each other. SEEBURGER has developed two modules in their own SAP namespace, namely the invoiceconsole and SEEBURGER configurable templates for SAP Business-Workflow, superseding the need for any ABAP workflow development. The most sophisticated, tight integration of Purchase-to- Pay Solution for SAP R/3 users (minimum requirement ECC 5.0) is our SAP add-on module»invoiceconsole«. It handles all communication between SAP, Purchase-to-Pay Solution and the archiving solution, using SAP certified standard interfaces like ArchiveLink/OAWD. Subsequently customers may want to use our SAP Workflow Templates enhancing standard BusinessWorkflow functionality, or use our ERPindependent WEBflow solution, or even a combination of both. The process instances and process domains are: Workflow instantiated process chains Archive communication controlled by the invoiceconsole communicating via SAP ArchiveLink Transaction management and control InvoiceConsole Purchase-to-Pay Solution communication Structuring and processing of invoice data for final posting Posting strategies (see next chapter) Final posting SEEBURGER & SAP have a long-standing partnership Purchase-to-Pay Solution Whitepaper 16

17 ERP Posting Strategy Determination of the posting strategy (rule-based) A flexibly designed framework of rule-based validations checks the transactional invoice data (using the original Purchase-to-Pay data in combination with other SAP data). Based on the results and the rules invoice processes invoices according to the relevant posting strategy. To some extent, individual criteria can be taken into account for decision making if an invoice gets posted directly or parked firstly. Criteria e. g. can be the purchase order reference of an invoice or rules with more than one criteria to be fulfilled. Example: Invoices with purchase order reference should be posted automatically. But if it is a purchase order item referenced to on the invoice for which no goods have been received the invoice must be parked directly. SEEBURGER Purchase-to-Pay Solution determination of the posting strategy OCR Data Determination of criteria for rulebased decision of the posting strategy for the specific transaction Access to SAP data base e. g. purchase order data SAP data base Posting parameter for an invoice Determination of the posting strategy per transaction Trigger of the relevant process step according to determined posting strategy Framework of rules for determination of the posting strategy invoiceconsole Customizing Purchase-to-Pay Solution Whitepaper 17

18 Workflow Instantiated workflow process chains The Purchase-to-Pay Solution provides the ability to customize your own approval and clarification processes by using pre-defined workflow tasks in combination with customizing options available in the Purchase-to-Pay Solution. For this purpose, SAP standard workflow and/or web-based Purchase-to-Pay WEBflows stand-alone of ERP elements are used by SEEBURGER. The flexibility of the process would be enhanced by the automatic user finding and resulting process control. By a reference field printed on the invoice, e. g. purchase order number or name of the purchaser, Purchase-to-Pay Solution automatically recognizes the buyer and/or the first and second approver. The invoices according to the set of rules are then transferred across the workflow process to the respective approver/ buyer or teams. After clarification and approval steps have been completed, the invoice can be posted. invoiceconsole Monitoring Center For every single invoice the invoiceconsole logs all process steps. From the time of scanning (via»early scanning and archiving«in SAP) an unique transaction ID (process ID) is assigned to the invoice document. The invoice- Console monitors the invoice processing based on that unique process ID: Purchase-to-Pay Solution assigns a clear status to each process step of an invoice, e. g. for the transfer of the data to Purchase-to-Pay Solution, for in post processing, in first approval, second approval, rejected to vendor, >internal clarification started, escalation started, posted automatically, invoice canceled, etc. The status is recorded at the time of each process step to the transaction history and process log which later gets archived together with the SAP accounting document, original invoice image and if existing further attachments to the invoice. In addition, the corresponding data recognized by Purchase-to-Pay Solution is shown. Different layouts and filters allow a separation of the already completed invoice transactions, remaining invoices to be processed and invoices with the user s involvement, currently in process by other users. Automated posting As a fundamental principle, only purchase order related invoices can be posted automatically if they match vendor master data, purchase order information and if available goods receipt data. Perfectly matching purchase order related invoices do not require approval for posting and payment because the expense has been approved upfront during requisition and purchase approval. Therefore it is important to achieve a high quote of purchase order related invoices. Leaders target over 80 % of all invoices being purchase order related and fully accounted with G/L accounts and cost objects. An instrument to improve the PO quote can be clear requisitioning and purchasing processes supported by well-defined procurement policies. All other invoices must be verified manually during invoice post processing because of the limited information for an automatic approval for posting and payment. Practically the system allows a higher degree of flexibility than just mentioned: For all invoices that are not the perfect purchase order match some clients requested fully automated posting up to a certain invoice amount. Special validations verify the permitted formats and values of G/L accounts and cost centres. The following set of exclusion criteria is configurable within Purchase-to-Pay Solution in order to prohibit fully automated posting, some of them using the ERP master data again: Exclusion in case of foreign country invoice (supplier s country ID as stored in master data is not the same as for the company code) Certain document currencies Invoice total amount exceeding a configurable threshold Exclusion of automated posting for a configurable list of vendors Purchase-to-Pay Solution Whitepaper 18

19 Invoice Processing in Detail Workflow control Workflow In order to process invoices as efficiently, as possible, it is important to focus on the technical and the organizational requirements. An optimized invoice handling process can only be achieved through a balanced combination of the two areas. In a well defined procurement and accounts payable process the invoice approval should follow the same rules as the approval of a purchase requisition. Rather than aligning the purchasing process with the accounts payable process many companies assume that the costs of implementing clear purchasing rules and procedures are much higher than compensating maverick purchases by accounts payable invoice processing. In many cases requisitions or purchase orders are dummy orders, which include a nominal price that does not match the invoice prices and therefore creates efforts in clarification and extends invoice cycle times. Often the approval processes and levels of the purchase orders are not clearly defined. Because of that lack of well defined purchasing processes intensive invoice clarification and approval is the consequence. Leaders in purchasing use preferred suppliers with catalogue items and prices, determine approvers automatically based on requisition amounts and commodities and prevent maverick purchasing as much as possible. Nevertheless, it is impossible to avoid invoices without purchase order reference completely, as there will always be the need to pay certain taxes, fees or telephone and electricity bills which will never be the result of purchasing process. Therefore, it is advisable to agree with the suppliers, as far as possible, that the name of the purchaser is written on the invoice. Such a clarification is required in order to achieve faster and easier invoice processing by automatic user determination. Automatically assigning accounting templates to certain invoices can be used as an effective instrument to avoid manual repetitive accounts payable work and trigger approval workflows automatically. To support this process the supplier is informed to reference on all non PO invoices a certain criteria e. g. an address, or a cost center. A simple, fast verification and payment of incoming invoices lies ultimately in the interest of the supplier. Non PO invoices run through a 2-step approval: 1 st approval by the cost approver and 2 nd approval by a budget approver. If the cost approver has been determined, the invoice image is sent together with the invoice document and corresponding accounting data via workflow to the cost approver. This takes place automatically with the SEEBURGER solution components such as SAP Workflow and the Purchase-to- Pay-Webflow. The invoice handling is performed based on the defined accounting process according to the parametric approval rules and templates for accounting objects for non PO invoices. If the invoice has passed 1 st approver successfully, then the determination of the 2 nd approver is done. Finally, after 2 nd approval, the invoice gets posted. If an approver does not react on invoices to be approved within a defined period of time, the invoice runs automatically into an escalation process. Out of the escalation the invoice can be canceled and rejected to the vendor via automatically, commented as»incompliant Invoice missing the following legal requirements «A lean approval process, if necessary enhanced by numerous notices send out for information of other people, increases fast invoice processing and prompt payments. Whether the SEEBURGER SAP Workflow or the Purchaseto-Pay Webflow is used depends often on the number of existing SAP licenses on the client side. The SEEBURGER SAP Web-Workflow allows, based on the ITS/WAS server Purchase-to-Pay Solution Whitepaper 19

20 Workflow of the SAP system, assuming required SAP licenses are available, a simple integration of the NON-SAP user for the non PO invoice approval process. In addition SEEBURGER Mobile is a new way to approve invoices being in SAP approval workflows for non-sap users via mobile devices or even internet browsers. Purchase-to-Pay Solution Whitepaper 20

21 Workflow This screenshot shows all header and line item data of the current invoice. The upper section contains the invoice header data (i.e. invoice number, supplier, delivery date, etc.) as well as the This screenshot shows all header and line item data of the current invoice. The upper section contains the invoice header data (i. e. invoice number, supplier, delivery date, etc.) as well as the comments field. The user can add a comment at any time, for example to leave a message for the subsequent processing of the invoice by following workflow recipients. Forwarding The approver can forward invoices incorrectly routed to the approver to other approvers or send the invoice back to the post processing center. Supplier communication In case of clarification with the supplier is necessary the approver is able to send the invoice document and its attachments as PDF via to the supplier. A high number of invoices in status clarification is always an indication that the purchase order process is incompliant and the purchase order quality is poor. The section at the bottom displays the invoice line items, invoice attachments, workflow users etc. Automatic forwarding Based on a set of rules for automatic user determination and/or assignment of accounting templates, the invoice can be forwarded directly to an approver or a person that clarifies PO mismatches within purchasing department. Accounts payable would not need to touch the invoice when the system is able to determine the recipient and action to be taken on its own. Purchase-to-Pay Solution Whitepaper 21

22 Workflow SEEBURGER SAP workflow for clarification of price and quantity mismatches The SEEBURGER SAP workflow for clarification of price and quantity mismatches is aimed specifically at users of the Accounts Payable and Purchasing departments. The work list is displayed in the SEEBURGER Task Manager (alternatively, the standard SAP Business Workplace can be used). The SEEBURGER Task Manager includes, besides the list of tasks pending for action, a list of the already completed invoice transactions and invoices with the user s involvement, currently in process by other users. Purchase-to-Pay Solution Whitepaper 22

23 ERP After selecting and opening an invoice the SEEBURGER SAP workflow screen is displayed to the user. The user can see through the traditional SAP screen layout in the upper third of the screen the invoice header information of the corresponding invoice.buchungstransaktionen MIRO, FB01, FB60 etc. springen, um die Buchung abzuschließen. In the center of the screen the potential workflow options and the comments field are displayed. Comments can be entered by using predefined text modules or as individual text entry. For each of the selected workflow option it can be defined via customizing whether the entry of comment is required optional or optional. The comments are recorded; time stamped with user ID and logged in the process log and transaction history. Every user of SEEBURGER s SAP invoice workflow is able to display the entire process history via the workflow protocol of the invoice. Purchase-to-Pay Solution creates and updates the workflow protocol automatically during processing of an invoice document, showing all relevant information to understand the process history. Relevant information is e. g. who did when what type of action on the invoice, what has been commented in each workflow step and what is the invoice status of the document at each time it has been touched by the system or by any user. When finishing the process by posting or canceling an invoice, the workflow protocol is automatically linked to the SAP document by using the SAP ArchiveLink interface. The workflow protocol can be used as the basis for creating comprehensive process documentation according to accounting standards as e. g. GoBS or SOX. In addition it can be very helpful for internal and external audits. During invoice processing the SEEBURGER SAP workflow user is able to dive directly into SAP purchase orders, vendor master data records, accounting objects and SAP standard accounting transactions such as MIRO, FB01, FB60 etc. in order to complete the invoice processing. The SEEBURGER SAP workflow user can directly jump into the related purchase order, as well, as standard SAP transactions MIRO, FB01, FB60, etc. in order to complete the posting of the invoice. Purchase-to-Pay Solution Whitepaper 23

24 Workflow Escalation Management An automatic multi-level escalation management for both SAP approval and clarification workflow comes Purchase-to-Pay Solution and can be customized to the clients needs. For example a 3-level escalation management is going to be set up: First level: a defined number of reminder s is sent out to the user which is in charge of the invoice (work item user). The frequency of the reminders is configured, too. Second level: If the user which is in charge of the invoice did not action the invoice after the final reminder of the 1 st level expired, the invoice gets reassigned to e. g. the supervisor of the initial work item user. Then the same routine of reminder s to the supervisor starts again. Third level: If the supervisor did not action in time the invoice can be reassigned, e. g. to the accounts payable team, to a dedicated escalation team or to the supervisors supervisor. Again automated reminders can be used to speed up the escalation. Via SEEBURGERs invoiceconsole, Invoice Ledger Report or Reporting cockpit, invoices in escalations can be identified rapidly, and if necessary the administrator or Accounts Payable Lead can reassign invoices to other users manually rather than watching the automated escalation routines taking place. Purchase-to-Pay Solution Whitepaper 24

25 Workflow Legally compliant archiving All the relevant information that is connected to the invoice must be archived by the recipient. That means in addition to the invoice the following documents must be archived: the signature verification protocol (verification report), the encrypted and decrypted signature, the key for decryption (public key of the invoicing party) and the process protocols of the Purchase-to-Pay Solution system. The extensive and complete archiving of all files, documents and protocols is relevant for the invoice processing. Linking these via the SAP ArchiveLink technology directly to the corresponding SAP document enables the legally required retrograde and progressive auditing (SAP invoice document l original invoice l SAP invoice document). If the incoming invoice file has been converted e. g. to transfer the invoice electronically directly into the ERP system the original invoice file and the conversion protocol must be archived. Purchase-to-Pay Solution enables - by using an archive system with compliant data storages - the audit-proof and cost efficient archiving. SAP applications usually archive documents by using the standard archive interface of SAP, the so called SAP Archive- Link. Requirements to be fulfilled by an archive solution are certain retention periods of multiple years, impossibility of changes or deletions once documents are archived, monitoring, accountability and auditability. Purchase-to-Pay Solution Whitepaper 25

26 Workflow ALLP It s increasingly more important for international companies to deploy unified, software-based business processes throughout all of their subsidiaries. The main challenge for such a roll-out to be performed successfully is the ability of the software to adapt to the differences in those countries. Which is particularly true for»freeform«based recognition engines. They must not only»read«terms in different languages but also»understand«common terms and differences in document structures, e. g. address formats. With the Automatic Language Learning Program (ALLP) SEEBURGER provides the first tool of its kind in the world by which invoice or order automation can be rolled out internationally. Automatic learning processes are used to train both the new language and the rules of interpretation, which differ by culture. Global enterprises can leverage a single solution all over the world and benefit from the learning effects as ALLP adapts to multiple languages and cultural business standards. The result is that international organizations are able to deploy a single solution in all of their locations. SEEBURGER ALLP ensures a consistent and manageable approach to international implementations. Process efficiency and cost savings increase with each new language and culture added to the system. ALLP is based on the proven, automated learning capabilities of Purchase-to-Pay Solution. The system almost automatically generates a new language pack subsequent to an initial training phase with the customer which is fairly easy using our standard recognition post-processing tool. All recognition related fine-tuning is carried out by SEEBURGER experts. SAP invoice ledger report or book of invoices: The invoice ledger report monitors all steps of incoming invoices from the receipt of the invoice during OCR and interpretation processes to its final posting or cancelation. Comprehensive and full invoice information is automatically captured for each invoice in background. This allows searching across the entire portfolio of incoming invoices. Documents can easily and quickly be found, when required, due to requests of vendors, purchasing departments, etc. The invoice ledger report provides a transparent overview of all invoices with information on the invoice amount, payment terms, due date, etc. The report focuses on all different channels of receiving invoices in Purchase-to-Pay Solution i.e. 1. Paper based invoices, 2. Fax based invoices, 3. Invoices received via as PDF or TIFF, 4. EDI invoices. In addition all invoices processed outside of Purchaseto-Pay Solution can be monitored by the invoice ledger report, too. These invoices usually get posted directly via SAP standard transactions such as FB60, FB01 MIRO, etc. For the selection of invoices, a variety of selection criteria is available. These criteria can be combined with a»and«. Purchase-to-Pay Solution Whitepaper 26

27 Invoice Processing in Detail ERP archiving ERP For example invoices can be selected based for certain company codes and their processing status: Scanning processed successfully Successful completion of the transfer to Purchase-to- PaySolution Successful completion of OCR Interpretation of invoices processed successfully Ready for invoice post processing 1 st invoice approval pending 1 st invoice approval successfully processed 2 nd invoice approval pending 2 nd invoice approval successfully processed IDOC successfully created Clarification of invoices in progress Invoices posted Invoices canceled etc. Therewith monthly financial statements can be carried out quickly. The book of invoices shows exactly if an invoice has been posted or not, if it needs to be accrued or not, etc. The sum of selected invoices by using the»sums«function helps to facilitate the liquidity planning. In addition, for each invoice the process history is displayed in aggregated tabular form and can, if necessary, be displayed in detail by accessing the detailed workflow protocol which is stored and archived together with the SAP document. The sorting of the table (column contents, column order, column sorting, etc.) can be set individually and independently by the user. Advantage is that no avoidable retrievals for relevant invoices are necessary anymore. The current status is now immediately in the SAP book of invoices. Purchase-to-Pay Solution Whitepaper 27

28 Supplementary modules and features The tabular summary of selected invoices and total amounts support daily liquidity planning. In addition, each the processing history of each invoice can be retrieved in tabular form. On demand, a detailed workflow protocol (PDF) can be displayed. It is archived with the SAP document via the SAP ArchiveLink interface. The sorting and filtering of the table (column contents, column order, column sorting, etc.) can be adjusted individually and independently by each user. Purchase-to-Pay Solution Whitepaper 28

29 Paper-to-ERP-Reporting During the Purchase-to-Pay Solution processing a large number of process data is collected in background. The SAP-Report/Statistic-Module accesses this database and reveals, at which steps of the automated processes offer room for improvements. It provides important information regarding the workload of the entire system and its sub-processes, teams, persons, etc. These detailed reports help to identify starting points where it might be clever to readjust the processes or the Purchase-to-Pay Solution system. The SAP-Report/Statistic-Module is able to analyze large volumes of data quickly and easily. SEEBURGER s SAP Reporting Cockpit for management information Purchase-to-Pay Solution Whitepaper 29

30 The SAP-Report/Statistic-Module provides information on all details from the invoice process. The user is able to run predefined reports which show clear, easy-to-interpret charts and are able to be downloaded. From the broad overview to the desired level of information any statistical information from the report can be used. Drill down from aggregated numbers to detailed documents is possible. Due to the variety of reports the overall functionality is very similar to known business intelligence systems that can access and report information from various angles. The reporting module comes with the following reports: Processing volumes by SAP module Comparison scanned vs. completed documents Stock of transactions with escalation status Completed/scanned processes with escalation status (planned) Posted documents / backlog over time Reports of the average processing time for individual process tracking and monitoring SAP modules SAP Document Types Posting code Processing steps Post-status Top-10 supplier assessment: The invoice volume According to transaction volume After the longest average processing time After the shortest average processing time With the Top-10 supplier evaluations, the main suppliers can be identified and the purchasing department can make suggestions for improvement. For example, the vendor with the highest volume accounts is targeted to a switch to the electronic invoice exchange. The ease of use is a key functionality of the new SAP-Report/Stastic Module. The module intends to be operated intuitively, so that a faster roll-out is possible and only a little training required for users exists. The ease of use is a key functionality of the new SAP-Report/Stastic Module. The module intends to be operated intuitively, so that a faster roll-out is possible and only a little training required for users exists. Purchase-to-Pay Solution Whitepaper 30

31 Variant Manager for non PO invoices For non PO related invoices the Purchase-to-Pay Solution solution provides an accounting table that stores templates, so called variants, of already accounted non PO invoices. Variants can be automatically determined depending on the combination of»company code/supplier«. Such a variant can split positions for allocations of costs, expenses, WBS elements, internal orders, etc. A number of variants can be saved in this way. One variant per combination of company code/supplier can be defined as the default variant. Then accounting variants are proposed automatically by the system for the next non PO invoice of same combination of the company code/supplier. Variant Manager for non PO invoices and web based post processing Recognition of material surcharges The freeform interpretation technique allows even complex subjects to be recognized and validated clearly. Purchase-to-Pay Solution Whitepaper 31

32 Digital Signature The digital signature replaces electronically the conventional handwritten signature. The digital signature is stored and kept in a so-called trust center. The signer then receives his electronic signature (private key) that is tamperproof and regulated by law. Important to notice is that the process of sending and receiving invoices electronically with digital signatures is handled differently. For online validation of the digital signature an internet connection to the Trust Center is required. Before implementing and using electronic data interchange for your incoming supplier invoices, we recommend the end-to-end process to be signed off by your internal and external auditors first. The audit proof gets more and more important as paying back deducted VAT to the tax office in case of an incompliant process or electronic invoice can be a significant financial burden for the invoice recipient. The signature component offered by us is using asymmetric encryption for creating and verifying electronic signatures. Signing process The sender of the invoice encrypts the hash value of the invoice with his private key that exists only once, and it is uniquely assigned to the sender. A hash value is basically the electronic fingerprint of a document. It is unique for every electronic document and is calculated using mathematical methods. The encrypted hash value - the actual signature - is logically linked to the invoice document. The signed invoice is then sent to the invoice recipient. Signature verification The recipient verifies the signature by decrypting the hash value with the corresponding public key. The public key can be duplicated as often, as required, and, is published, deposited and used in public directories. To verify whether the invoice is has been changed or not since the sender encrypted it, the receiver calculates the hash value of the invoice applying the procedure as the sender. If the two hash values are equal it proves that the received invoice is the same as the original invoice document sent to recipient. The asymmetric encryption method is called»public-key method«. It works in conjunction with a pair of two keys: One is a private key (only available for the sender) and the other one a public key (available to any recipient). Purchase-to-Pay Solution Whitepaper 32

33 EDI processing So far, EDI processing was relevant mainly to PO invoices and not to non PO invoices. But the ongoing market trend to substitute paper-based invoices by electronic invoices has made EDI processing more and more important especially to the non PO invoices, as EDI for PO invoices is a common requirement in certain industries form many years already. Therefore, the content-based verification of the non PO EDI invoice has become an important part of invoice processing. The SEEBURGER components invoiceconsole and SAP Workflow provide ideal solutions for this challenge. Using them, the EDI invoices are not only taken into account by their pure syntax, but also by their business content regarding purchase orders and goods receipts. The EDI invoices can be electronically handled in a very simple way, allowing processing and resolving mismatches, clarifications and approvals in exactly the same way, as paper-based invoices would be treated. Using the SEEBURGER solution erroneous invoice IDocs are resolved in the accounts payable team or other business functions. Cost reductions in invoice processing are your benefit derived by using SEEBURGER s add-on modules for the SAP environment: The previously time-consuming coordination between business and IT for the correction of incorrect IDocs becomes avoidable. The entire invoice process gets more efficient, faster, and last but not least harmonized across different channels of receiving and processing incoming invoices. Escalation management helps to remind and escalate invoices automatically in order to reduce invoice processing times. In addition, the invoiceconsole integrates existing IT infrastructures, such as e. g. SAP systems, archive systems, signature verification servers, etc. SEEBURGER SAP workflows allow clarifying, resolving approving EDI and paperbased invoices from a business point of view and not from a technical administration point of view. Purchase-to-Pay Solution Whitepaper 33

34 SEEBURGER Company Profile SEEBURGER s objective is to seamlessly integrate external and internal processes the interactions between different application systems or business partners while eliminating media discontinuity. Its end-to-end approach comprises project design and consulting, as well as the configuration and implementation of tried and tested software solutions, allowing SEEBURGER to fully automate business processes, which in turn delivers maximum efficiencies for its customers. The product portfolio ranges from logistics/rfid and automated document processing solutions to the efficient integration of B2B processes. It is enhanced by end to end and independent consulting services for the introduction of product data management systems. The long-standing partnership with SAP sets SEEBURGER apart in the industry solutions for SAP have strengthened its portfolio for a number of years now. SEEBURGER also offers Managed Services such as rollout and outsourcing and additional services such as consulting, support, and the total partner integration program. SEEBURGER customers benefit from its extensive industry expertise and know-how from more than 8,800 projects for companies such as Beiersdorf, Bosch, Coop, Danfoss, EnBW, Heidelberger Druckmaschinen, Hyundai, Lidl, Magna, Novartis, Osram, Porsche, RWE, Siemens, s.oliver, Schiesser, SupplyOn, Tetley, VW, Whirpool and many more. Founded 1986 in Bretten, Germany, SEEBURGER has offices in 17 countries worldwide. Purchase-to-Pay Solution Whitepaper 34

35 SEEBURGER History 1986 Market launch of the most successful EDI solution for the automotive industry 1993 Expansion of the EDI solution for other industries 1995 First company worldwide to receive certification for SAP R/3 Rel. 3.x. (1998 SAP R/3 Rel. 4.x.) 1996 European Software Innovation Prize for the ED- WIN product at the ESIP 1997 Start of internationalization in order to offer worldwide customer support 1999 SEEBURGER is the European leader for electronic data interchange (EDI/ EDIFACT) 2001 Successful positioning as solution provider for Business-to-Business integration 2003 Building a closer partnership with SAP 2004 Broadening of the product range for»managed Services«such as outsourcing and hosting 2004 SEEBURGER releases J2EE based B2B Gateway (BIS 6) solution 2005 Acquisition of Freeformation to enrich the automated recognition and processing of business documents (Purchase-to-Pay Solution and 4order) 2006 Enlargement of SEEBURGER s portfolio with SCM/ RFID, as well as PDM/PLM services 2007 SEEBURGER and BOSCH win the elog@istics award 2007 initiated by the AKJ Automotive for the first worldwide RFID Kanban project 2010 SEEBURGER again named a»leader«in Gartner s B2B Magic Quadrant and in the Forrester Wave for the»overall strength of their integration solutions«2011 SEEBURGER s managed file transfer solution SEE FX wins The Golden Bridge Award for best innovative solution Being successful in the future market Asia: Earning China Award 2007 for the»best IT Supply Chain Solution China«from the China Supply Chain Council for deployment of a complex JIT/JIS Solution at Beijing Benz- DaimlerChrysler Automotive Ltd. (BBDC) Increasing the partnership with SAP: Since the days of SAP R/2, SEEBURGER has been supplying comprehensive integration solutions for companies that use SAP. Today, SEEBURGER is the only B2B solutions provider with a portfolio that meets the entire scope of SAP users needs, whether they are SMEs or multinational corporations. SEEBURGER solutions were first SAP-certified in 1995, and today certification includes everything from basic EDI through to technically demanding NetWeaver certification. To date, SEEBURGER has been awarded more than 50 individual certifications. SEEBURGER is also one of the few exclusive partners whose products enjoy worldwide distribution by SAP, and has achieved SAP s Premium Qualification status the highest seal of approval for such products. SEEBURGER are a privately owned company founded by Bernd Seeburger in 1986 and remain wholly independent with no restriction or reliance on external shareholders or venture capitalists.»it is our aim to provide full business integration for each and every company with recurring business processes without them having to rethink their IT structures.«bernd Seeburger, CEO & Founder Purchase-to-Pay Solution Whitepaper 35

36 Geographical Coverage SEEBURGER provide global deployment and support capabilities through our direct office locations in conjunction where necessary with local partners. Our support centres operate 24*7 supports through three regional support service desks that are located in North America, Europe and Asia Pacific. The diagram below shows the global coverage of our direct offices along with existing partner relationships enabling SEEBURGER to service and support our more than 8,800 customers across 50 countries. Analysts View SEEBURGER has been named to the»leaders«category in the new Gartner Inc. Magic Quadrant analysis of businessto-business gateway providers released in June SEEBURGER s Business Integration Server and associated products are used by more than 8,800 companies around the world to automate trading relationships throughout the supply chain, offering a single integrated and highly scalable global platform with automated workflow, advanced message tracking, and the ability to integrate 100 % of an organization s trading partners including those that still do business on paper. The new Gartner report, titled»magic Quadrant for B2B Gateway Providers,«positions 14 B2B gateway vendors in the quadrant based on criteria including ability to execute, which includes overall viability, sales execution/pricing, market responsiveness and track record, marketing execution, customer experience and operations. Vendors earning a position in the Leaders quadrant»are likely to have high revenue and commitment to the market, high market share and installed bases, and products that are of interest to large audiences. In addition, leaders have demonstrated domain expertise and presented compelling messages that have penetrated the market (intentionally or unintentionally),«according to the report. Purchase-to-Pay Solution Whitepaper 36

37 »Most of the business-to-business (B2B) gateway software solutions rated in this Magic Quadrant have matured to the point where they can support a wide range of B2B projects; nevertheless, areas of substantial product functional differentiation remain, including overall product maturity, scalability, service-oriented architecture (SOA) service enablement, architectural coherence and community management,«the report noted.»vendors also differ substantially in terms of price/value, market understanding, market share, industry domain expertise, international strategies, global sales and support, and last but not least customer experience.seeburger has dedicated itself exclusively to businessto-business integration for more than two decades. That is clearly reflected in the maturity of our platform and our wide market adoption, and we believe it contributed significantly to our placement in the Leaders Quadrant in this new Magic Quadrant report,«said Bill Reeves, VP Strategy and Marketing of SEEBURGER US.»Organizations that are replacing their legacy EDI/B2B platforms or adopting B2B gateways for the first time can learn a lot from reading Gartner s objective evaluation of the various solutions on the market.«about The Magic Quadrant The Magic Quadrant for B2B Gateway Providers by Benoit J. Lheureux and Paolo Malinverno is copyrighted 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the»leaders«quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Purchase-to-Pay Solution Whitepaper 37

38 SEEBURGER Global Offices Asia Pacific China SEEBURGER Asia Pacific Ltd. Level 3, Three Pacific Place 1 Queen s Road East Hong Kong Phone Fax [email protected] CHINA HQ SEEBURGER China Inc. Suite , 20/F SINO Life Tower 707 ZhangYang Road, Pudong Shanghai P.R. China Phone Fax [email protected] SEEBURGER China Inc. CBD International Mansion C529, 5/F No.16 Yongan Dongli Chaoyang, Beijing, Phone +86 (0) Fax +86 (0) [email protected] Japan SEEBURGER KK Nishi-Gotanda Sign Tower 5th Floor Nishi-Gotanda Shinagawa-ku, Tokyo Phone +81-(0) Fax +81-(0) [email protected] Malaysia Malaysia Representative Office Level 28, The Gardens South Tower Mid Valley City, Lingkaran Syed Putra Kuala Lumpur Malaysia Phone +(603) Fax +(603) [email protected] Europe Austria SEEBURGER Informatik GmbH Vienna Twin Tower Wienerbergstraße 11/12A A-1100 Wien Phone +43 (0) 1/ Fax +43 (0) 1/ [email protected] Benelux SEEBURGER Belgium Regus Brussels Airport Pegasuslaan 5 B-1831 Diegem Phone +32 (0) 2/ Fax +32 (0) 2/ [email protected] SEEBURGER Benelux B.V. Het Poortgebouw Beech Avenue Schiphol-Rijk NL-1119 PW, the Netherlands Phone +31 (0) Fax +31 (0) [email protected] Bulgaria SEEBURGER Informatik EOOD Grigorij Gorbatenko Strasse 6 k-s Mlados I BG-1784 Sofia Phone [email protected] Czech Republic Phone [email protected] Eastern Europe & South Eastern Europe (except Hungaria, Czech Republic, Bulgaria & Turkey) Phone +49 (0) 7252/ [email protected] France SEEBURGER France S.A.R.L. 87, rue du Gouverneur Général Eboué F Issy Les Moulineaux (Paris) Phone +33 (0) Fax +33 (0) [email protected] Germany SEEBURGER AG (Headquarters) Edisonstraße 1 D Bretten (near Karlsruhe) Phone +49 (0) 72 52/96-0 Fax +49 (0) 72 52/ [email protected] Hamburg Spaldingstr. 77a D Hamburg Phone +49 (0) [email protected] Köthen Konrad-Adenauer-Allee 13 D Köthen Phone +49 (0) [email protected] Great Britain/Ireland SEEBURGER UK Ltd. Heathrow Boulevard Bath Road West Drayton Middlesex UB7 0DQ Phone +44 (0) Fax +44 (0) [email protected] Italy SEEBURGER Informatica SRL Unipersonale Via Frua, 14 I Milano Phone Fax [email protected] Spain/Portugal SEEBURGER Informática S.L. Pso. Infanta Isabel, 27-1 Izq. E Madrid Phone Fax [email protected] Sweden/Scandinavia SEEBURGER Svenska AB Vendevägen 90 (7th floor) S Danderyd Phone +46 (0) Fax +46 (0) [email protected] SEEBURGER Svenska AB Hisingsgatan 30 S Göteborg Phone +46 (0) Fax +46 (0) [email protected] Switzerland SEEBURGER Informatik AG Samstagernstrasse 57 CH-8832 Wollerau Phone +41 (0) Fax +41 (0) [email protected] Turkey SEEBURGER Türkiye Gümrük Cd. Fazlıoğlu İş Merkezi No:34 İzmit / Kocaeli / Türkiye Phone/Fax: Hotline(7/24): [email protected] Middle East & Africa Middle East & Africa Phone +49 (0) 72 52/ [email protected] North America USA SEEBURGER, Inc Peachtree Street NE Suite 1020 Atlanta, GA 30309, USA Phone Fax [email protected] For smartphone users: Scan code and get more information. All product names mentioned are the property of the respective company. SEEBURGER Purchase-to-Pay Whitepaper Standard 05/2012 Copyright SEEBURGER AG 2012 SEEBURGER AG (Headquarters) Edisonstraße 1 D Bretten Phone + 49 (0) 7252/96-0 Fax + 49 (0) 7252/ [email protected]