AP Invoice Automation and Workflow System

AP Invoice Automation and Workflow System

WHY AUTOMATE ACCOUNTS PAYABLE (AP) INVOICING

WHY AUTOMATE ACCOUNTS PAYABLE (AP) INVOICING Enables electronic workflow functionality to provide timely invoice information to AP and the appropriate reviewer/approver Provides for online completion of payment/check requests and approvals Provides for handling invoice exceptions online Enables P.O. matching functionality (twoway and three-way matching).

WHY AUTOMATE ACCOUNTS PAYABLE (AP) INVOICING Enables a more efficient process for adding invoice payment information into your records management system Allows for an efficient paperless electronic environment. Eliminates the cost of storage and retention of paper invoices Eliminates Staff time needed to receive, open and physically deliver invoices

WHY AUTOMATE ACCOUNTS PAYABLE (AP) INVOICING Eliminates data entry of invoice information that will lead to reduced errors Reduces PO match approval time Reduces vendor calls to the AP team freeing them to perform more value added tasks

WHY AUTOMATE ACCOUNTS PAYABLE (AP) INVOICING Additional benefits include: Fewer lost, missing, or duplicate invoices and payments Accelerates information exchange between the vendor and the Port. Vendors will have almost immediate visibility to the payment status of their invoices once submitted to the Port Enables multiple options for invoice receipt including mailbox, email, FAX and/or E- invoice. Centralization of Invoice Receipt.

WHY AUTOMATE ACCOUNTS PAYABLE (AP) INVOICING Expedited Approval Data in captured invoices can trigger automatic alerts that immediately notify the appropriate party when a specific action needs to be taken, helping AP offices avoid late penalties. Authorized personnel can review, annotate, or assign the invoices from any location at any time, removing the delay of interoffice mail and the need to wait for authorized persons to return to the office to render needed approvals. Ability to Avoid Penalties and Cash in on Discounts The most effective solutions for increasing company revenue are those that allow them to pay invoices early. With the proper capture and automated workflow solution, large volumes of invoices and their discount and penalty information can be entered as payables within hours of their receipt, then approved and processed in time to capture all discount opportunities. Quick Auditing and Compliance Automated workflow makes it possible for authorized users to see exactly where any invoice is in the process, and to track who completed each action and when. Workflow reporting leaves digital trails that show every action related to an invoice, which allows for quick queries of any data needed. Integration with AP Systems Many organizations have valuable data in distinct systems that are unable to communicate with each other, making the management of this information difficult. Integration of automated workflow with an organization s invoice processing and payables system makes it possible to extract and share data between applications, thus maximizing productivity.

IS AUTOMATING AP INVOICE PROCESSING RIGHT FOR MY ORGANIZATION We know what it costs for our organization to process an invoice and its reasonable and we are not looking to cut costs We always pay our vendors on time Our invoices are reviewed and approved in less than five days We capture all early payment discounts that are available We love all the paper invoices and supporting documents

IS AUTOMATING AP INVOICE PROCESSING RIGHT FOR MY ORGANIZATION We love storing all the paper invoices in file cabinets We always know all our outstanding liabilities We never receive duplicate invoices Our vendor invoices never get lost in the mail We never get calls from vendors complaining that they haven t been paid

THE PORT OF SEATTLE HOW WE STARTED Performance Metrics Port frequently pays vendors after the invoice payment due date WHY?

The Problem Jan 12 days; Feb 22 days; Mar 4 days, Apr 13 days = Average over 4 months 13 days Goal = 5 days before Invoice Due Date 2015 Average AP turnaround 1 day Goal = 3 days or less2015

ISSUES IDENTIFIED In 2014 The Port of Seattle Processed 38,000 Invoices 99% of invoices received were paper Decentralized receipt of vendor invoices is inefficient. Invoice often mailed to the wrong Port department Port has no visibility to outstanding invoices and therefore does not. know the true outstanding AP liabilities Payment/Check Requests are manual and involve moving paper between Departments and AP. No opportunity to check accounting information before it arrives in AP for processing.

ISSUES IDENTIFIED For Invoices associated with PO where goods/services have been received and price/quantity match AP still has to manually process. Vendors often call AP team when they have not been paid timely. Because there is no visibility of the invoice to the AP team, in order to help the vendor, AP must first determine who in the organization the vendor provided the goods and/or service to Scanning invoice and payment request information does not occur until after the invoice has been paid no ability to research an invoice until after it has been paid

PROCESS IMPROVEMENT GOALS Centralize vendor invoice transmittal location & Port receipt. Provide multiple options for invoice receipt email (preferred method) US mail, vendor portal and e-invoice. Immediately scan & electronically capture invoice data upon receipt. Provide online completion of payment requests for all Port departments. Implement electronic workflow review/approvals for all invoices and payment requests. Allow straight- thorough Invoice Processing via 2-way/3-way PO matching.

PROCESS IMPROVEMENT GOALS Strengthen payment information & status access electronic and immediate, Port-wide. Improve payments management -- shift from reactionary to responsible payments handling. Ensure timely payment of Port obligations -- consistent with contract payment terms. Provide readily accessible and complete Accounts Payable liability information. Allows for an efficient & responsive electronic paperless environment.

WHERE ARE WE TODAY? Documented our current invoice payment process Applied a Limited Lean focus to our current processes to identify areas to improve Expanded the Scope: PO matching to allow for straight through PO invoice processing Chartfield Validation at point of entry

WHERE ARE WE TODAY? Implemented the COR360 test system in early March 2015 To learn about the system Explored if we could add combochartfield edits in COR360 too complex but we have a work around Explored PO invoice processing Chartfield Validation at point of entry

WHERE ARE WE TODAY? Finalize Vendor Invoice Information Requirements and alert vendors/port departments Finalize new AP Invoice Processing and Approval Policies Work with each Port Department to document their Workflow Approval process Develop and implement the to/from interface files Communication Plan Training Schedule Implementation Approach and Schedule

APIA INTERFACE FILES

QUESTIONS