The Benefits of Automating AP Invoice and Purchase Order Operations

Transcription

1 The Benefits of Automating AP Invoice and Purchase Order Operations Presented by Dan Humbert Chrome River, Product Manager

2 Today s Objectives 1. Benefits of automating AP operations 2. Benefits of integrating within your automated AP processes 3. Demonstration of Chrome River INVOICE and PURCHASE ORDER

3 What is AP Automation? Sits in front of your financial system s AP module An invoice image repository with powerful workflow and compliance capabilities Leverages data from your existing systems (GL s, matters, vendors, people, etc) Makes all of this data available online in an intuitive, user-friendly manner

4 Standard Non-PO Invoice Process Receive an Invoice from a vendor Create an INVOICE Record (Add an image, enter data into CR) Invoice enters workflow in CR for added data, compliance, routing, review, updates, and approval Approved Invoice exported to your ERP for posting & payment Paid invoice data update

5 4 Benefits of AP Automation 1. Increased Visibility and Tracking Images are online visible to AP as soon as they are imported Track invoice status for approvers and suppliers 2. Systematic Policy Enforcement and Controls Approvals ensures you are not under OR over approving Allocation and data entry rules can be distributed 3. Enhanced Productivity Easy to enter and easy to approve an invoice Use workflow instead of /interoffic /phone 4. Analytics on Spend and Processing Leverages technology to capture and report on metrics

6 What is a PO? A Purchase Order ( PO ) is pre-authorization to buy goods and/or services according to agreed upon terms and prices A PO Number uniquely identifies each Purchase Order

7 Standard PO Creation Process Step 1 of 2 Need to buy something from a vendor Create a PO Record (Add an image, enter data into CR) PO Request enters workflow in CR for added data, compliance, routing, review, updates, and approval Approved PO Request converted to a Purchase Order PO document sent to Vendor to authorize purchase

8 Standard Invoice Match to PO Process Step 2 of 2 Customer receives Vendor Invoice referencing PO Customer scans invoice, and copies PO data into invoice Invoice enters workflow in CR for added data (if needed), compliance, routing, review, updates, and final approval Approved Invoice exported to FinApp for payment Paid invoice data update back to CR Invoice MATCHES PO Invoice routes for approval rules Invoice DOES NOT MATCH PO Invoice routes for exception rules

9 What Do We Mean by Matching? Invoice Matching is the process of comparing the Invoice Received to the PO that it references Two-way matching: PO and Invoice Three-way matching: PO and Invoice and Receipt Matched invoices are ready to be approved Unmatched invoices have some exception to be resolved

10 6 Benefits of Using a PO 1. Enables Asking for Permission vs Begging for Forgiveness 2. Holds your suppliers accountable to agreed upon terms 3. Enforces the use of favorable terms negotiated with preferred suppliers 4. Provides visibility into committed spend (the future) vs invoiced spend (the past) 5. Your Suppliers may require it 6. Matching an invoice to a PO makes AP s job MUCH easier

11 Issues to watch out for with POs PO s can Make legitimate purchases too difficult Have material administrative overhead Become confusing Be ineffective Potential Result It does NOT have to be this way; They can incentivize suppliers and their customers (your users) to work around the PO process PO s can be a VERY useful tool.

12 PURCHASE ORDER Demo 1. Create a PO in the system and submit it 2. Create an invoice that matches the PO and submit it 3. Create an invoice that does NOT match the PO and submit it 4. Show how a Procurement organization can Manage the PO s and invoices that reference them

13 Want More Info? Contact Us! web tel

14 Questions?

15 Thank You! Dan Humbert