How To Process Invoices In A Business Process System

Size: px

Start display at page:

Download "How To Process Invoices In A Business Process System"

Alexander Fields
3 years ago
Views:

1 Session 270 Op-mize Invoice Processing and More with Capture, Imaging and Workflow Jamie Rancourt Senior Manager, WebCenter Product Management Oracle Corpora:on

2 CFO Priori-es Reduce Opera:onal Costs & Increase Profits Op:mize Working Capital Mi:gate Risks

3 CFO Priori-es

4 The Payables Paper Problem High volumes and variety of formats Inefficient and expensive to store & process Difficult to search & find Reten-on, compliance & legisla:on issues

5 The Cost of Paper $ Over 3 trillion paper documents in North American businesses Growing at a rate of between 8% and 22% a year Costs $20 to file each document, $120 to find it again, and $220 to reproduce a lost document Average cost to send a package via courier is between $8 and $15 One cubic foot of storage space costs approximately $23! Source: AIIM & PayStream Interna:onal.

$220 to reproduce a lost document Average cost to send a package via courier is between $8 and

6 IFO AP Automa:on Study 2011 Paper in AP

7 IFO AP Automa:on Study 2011

8 AP Automa-on Costs Automated AP processes on average can process invoices at $5.41 per invoice. Best in class automated AP processes can process invoices at a cost of $2.05 per invoice, the very best companies can process an invoice for less than $1.00 The Accounts Payable Network, 2011 Monthly Invoices Associated Cost Manual Process Associated Cost for Automated Process 5,000 $100,000 $10,250 - $27,050 10,000 $200,000 $20,500 - $54,100 25,000 $500,000 $51,250 $135,250

05 per invoice, the very best companies can process an invoice for less than $1.

9 CFO Priori-es Reduce Opera:onal Costs & Increase Profits Op:mize Working Capital Mi:gate Risks

10 Cash is King

11 2/10 Net 30 2% for 20 Days 365 Days / 20 Days = 18 periods 2% * 18 = 36% APR

13 Typical Accounts Payable Department Open & Sort Mail Enter Invoice Manually Validate Against PO Route for Approval Invoices Returned to AP Pay Invoice DAY 10 DAY 20 DAY 30+! Errors Delays Wasted resources Poor Visibility Loss of Control!

Invoices Returned to AP Pay Invoice DAY 10 DAY 20 DAY 30+!

14 Automated Accounts Payable Department Open & Sort Mail Scan & Extract Data Automa:c Valida:on Against PO Pay Invoice DAY 1 DAY 20 DAY 2-3

15 Op-mize Working Capital Automated invoice processing can be completed in 4 days on average. The very best companies can process an invoice in less than 3 days. The Accounts Payable Network, /10 Net 30 You can now control your working capital more efficiently

The very best companies can process an invoice in less than 3

16 CFO Priori-es Reduce Opera:onal Costs & Increase Profits Op:mize Working Capital Mi:gate Risks

17 Mi-ga-ng Risks GLOBAL CORPORATE FRAUD REACHING ALL TIME HIGHS Organizations Suffering from Fraud Worldwide UNINTENTIONAL ERRORS AND LEAKAGE Global, Fortune 500 Firm, High-Tech 20% % North America 87% Europe 83% Asia 92% Over 4 audit cycles, consultants found $17.5M in payment errors La:n America 90% Middle East/Africa 87% $0 $2.5M $5M Source: Kroll Global Fraud Report, Annual Edition 2010/2011 and Quarterly Corporate Fraud Index Network, Q1 2011

Asia 92% Over 4 audit cycles, consultants found $17.

18 Accounts Payable Automa-on How do I free up working capital? Capture early payment discounts Op:mize payment op:ons How do I reduce opera:onal costs & increase profits? Remove paper from invoice processing Automate the invoice process How do I mi:gate risks? Automate approvals & invoice limits Understand where your bojlenecks are

19 Accounts Payable Automa-on Mone-ze your Accounts Payable Department!

20 The Solution is Simple Capture digi:zes invoices & extracts data Imaging stores, retrieves, manages invoices Workflow accelerates invoice processing Lowers processing & storage costs Reduces process cycle times Improves visibility throughout cycle Strengthens compliance & controls

processing 1 2 3 4 Lowers processing & storage costs Reduces process

21 Invoice Processing Automa-on Capture Extract/Index Store Access Route Scan invoices Invoice header and line items extracted Store in imaging repository Invoices and data accessed via ERP Workflow resolves excep:ons Monitor

22 Capture Regional Office Corporate Mail Room High volume, batch scanning and/or Reduce inter- office shipping costs with ad- hoc, remote scanning Support for enterprise & desktop scanners, & Mul:- Func:on Devices Centralized Enterprise Content Management Repository

23 Extract & Index Intelligent Character Recogni:on No templates, rules or anchors required Eliminates 80% of manual data entry out- of- the- box Both invoice header and lines extracted, plus PO matching Validates data with ERP Performs fuzzy search for fault tolerant data valida:on

24 Extract & Index Acocdrnig to a reschearer at Cmabrigde Uinerv:sy, it deosn t mjaer in waht oredr the ljeers in a wrod are, the olny iprmoatnt :hng is taht the frist and lsat ljeer be at the rghit pclae. The huamn mnid atclluay cnovrets fzzuy inupt to prfecet outupt. And you awlyas tghuhot slpeling was ipmtorant.

25 Access & Route Faster excep:on resolu:on, account coding & approvals: Pre- built valida:on workflows with excep:on handling 1 AP clerk requires invoice distribu:on coding Automated no:fica:ons to users inside & outside the ERP environment Automated re- assignment, delega:on or escala:on 2 Employee receives with link to coding form & invoice 3 AP clerk is no:fied of update; coding is already in ERP

26 The Clear ROI of Automated Invoice Processing Achieved ROI of 180% Payback in 6 months ($521,000+ annual benefit) Cut invoice & expense processing costs by 50% Recognizing addi:onal vendor discounts of $300K/year Maintained A/P staff while transac:ons increased by 25% Achieved ROI in less than 18 months Invoice retrievals reduced from 2-10 days > 1-10 sec. Saving $1 million/year

27 Case Study Texas Industries (TXI) is a leading supplier of cement, aggregate and consumer product building materials Primary markets are Texas and California 100 plants across 5 states TXI is commijed to protec:ng the environment and restoring our mined land to make it viable for other uses

28 The Business Case Over last few years TXI was looking to reduce opera:ng cost and increase profit margin Iden:fied invoice processing as one area to help with this cause 3 key goals: Reduce invoice processing labor cost by 75% Reduce invoice cycle :me from ~30 days to <5 days Reduce audit risk via systema:c controls for approval

29 The Challenges Highly decentralized AP organiza:on Invoices were mailed to virtually all plant/office loca:ons and were routed to different loca:ons for approval Each loca:on had resources to handle AP invoices with over 50 AP processors involved in the en:re process Process was very labor intensive and manual and used to take about 30 days

30 The Solu-on AP Invoice Processing Automa-on Capture, Forms Recogni:on, Imaging & Workflow with their Payables applica:on Forms Recogni:on was a key differen:ator Benefits Reduced manual verifica:on of invoices to ~25% Reduced processing :me to 3-4 days PO invoices and invoices without any excep:ons are in the AP system on day received Es:mated reduc:on in shipping and storage costs = 50% Remote AP processor roles removed Reduced FTE s to 4 Users Love it Produc:vity is going up and moral has increased

31 Why Stop at Accounts Payable? Business Process Procure-to-Pay Order-to-Cash Travel & Expenses HR Onboarding & Benefits Type of Images Supplier Invoices Checks, Remittance Advice Receipts, Expense Reports Enrollment forms, Visa applications Benefits Grow ROI Extend to other processes for free (CPU- based licensing) Achieve greater efficiencies Capture Extract & Index Store Access Approve

32 JOIN THE WEBCENTER COMMUNITY Are You Part of the Latest Conversa:ons? Oracle WebCenter Blog: hjp://blogs.oracle.com/webcenter Oracle WebCenter Homepage: hjp://oracle.com/webcenter Oracle WebCenter Newsleger: hjp://oracle.com/newslejers Twiger: hjp://twijer.com/oraclewebcenter Facebook: hjp://facebook.com/webcenter LinkedIn: hjp://linkd.in/orcl_social

Advanced Invoice Processing: One Step at a Time. Sam Abadir Solu.on Manager Accoun.ng Percep.ve So7ware

Advanced Invoice Processing: One Step at a Time Sam Abadir Solu.on Manager Accoun.ng Percep.ve So7ware AutomaAon of Accounts Payable With only about 5 % of the world s invoices truly automated end- to-