TIS in the Finance Department. Cashflow management –DSO v DPO –Visibility of information...

TIS in the Finance Department

Cashflow management– DSO v DPO– Visibility of information– Manage accruals

Resource management– Staff turnover– Risk, training cost, consistency

Vendor and Exception management– Vendor education – PO reference– Invoice duplication– Out-of-tolerance transactions

Invoice approval– No control, delays process

Compliance– Process audit, Management information

Finance Challenges

Accounts Payable Sub-Processes

Source: BearingPoint 2007

Accounts Payable Sub-Processes

Source: BearingPoint 2007

66%Where TIS can help

Vendor Analysis

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Non P

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PO &

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Ord

erEDI

EDI + Paper

Paper

PURCHASING

METHO

D TRANSACTION TYPEPO

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on P

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Audit

How the process works – Step One

Post Receipt

Scanning

Document ClassificationInvoices

Cheques

Remittance

Rejection Letters

Fax Receipt

Email Receipt

Digital Mailroom

Volume Report

Audit Audit

How the process works – Step Two

Post Receipt

Scanning

Document ClassificationInvoices

Cheques

Remittance

Rejection Letters

Fax Receipt

Email Receipt

Digital Mailroom

Invoice Reader

Freeform OCR

Engine Tuning

PO / Non PO

Header, Footer & Line item

Data Correction

Self Learning

Multiple Languages

Data Extraction

ERP System

Statistical ReportingVolume Report

Audit Audit Audit

How the process works – Step Three

Post Receipt

Scanning

Document ClassificationInvoices

Cheques

Remittance

Rejection Letters

Fax Receipt

Email Receipt

Digital Mailroom

Invoice Reader

Freeform OCR

Engine Tuning

PO / Non PO

Header, Footer & Line item

Data Correction

Self Learning

Multiple Languages

Data Extraction

Vendor Validation

Units

Pricing

Multi Currency/VAT

Duplicate Invoice Check

2/3/4 way match

Customer RulesValidation

ERP System

Statistical ReportingVolume Report Financial

Reporting

AuditAudit Audit Audit

How the process works - Step Four

Post Receipt

Scanning

Document ClassificationInvoices

Cheques

Remittance

Rejection Letters

Fax Receipt

Email Receipt

Digital Mailroom

Invoice Reader

Freeform OCR

Engine Tuning

PO / Non PO

Header, Footer & Line item

Data Correction

Self Learning

Multiple Languages

Data Extraction

Vendor Validation

Units

Pricing

Multi Currency/VAT

Duplicate Invoice Check

2/3/4 way match

Customer RulesValidation

Exception Management

Approval Processing

Discrepancy

Resolution

Vendor Management

Multi Currency/VAT

Resource Analysis

Workflow

ERP System

Statistical ReportingVolume Report Financial

ReportingWork in Progress

Reporting

Improve Business Outcome

System will scale in volume and applications• Accounts Receivable• Customer Services• HR• others…

Solution Summary

Early visibility of transactional data

a) Operational • Maximise AP resource• Creates efficient exception

and rejection handling• Reduces training

b) Business• Assists vendor education• Capitalise on early payment discounts• Vendor rationalisation

Full audit of processIdentifies duplicateinvoices and fraud

Questions

HOW INVOICE READER WORKS

Solution Overview

Provides “Fully Featured” Webbased access for remote

workers

Approval

Invoice Reader solution

Processed Data andImages

ERP Master Data

Secure Web Access

Customer Rules

Exception Management

Archive Link

SAP GUI

Management Information

Throughput

System Tuning

Financial Reports

Management Information

Work in Progress

Financial Reports

SLA Statistics

Paper

EDI

Email

Fax

ERP GUI

ERP

Solution Overview

Provides “Fully Featured” Webbased access for remote

workers

Approval

Invoice Reader solution

Processed Data andImages

ERP Master Data

Secure Web Access

Customer Rules

Exception Management

Image Repository

Management Information

Throughput

System Tuning

Financial Reports

Management Information

Work in Progress

Financial Reports

SLA Statistics

Paper

EDI

Email

Fax

Scanners and Image Quality

Kodak i1420

Kodak i660

Read the Invoice

Optical Character Recognition

Engine Comparison Algorithms

Field Level Engine Definitions Dates Amounts etc...

Engine 1 25***8

Engine 2 2*5378

Engine 3 253478

Engine 4 2*34*8

Engine 5 25***8

Virtual Engine ResultSafe: All engines must return the same result.

2****8

Normal: Only engines that returned a result are counted.

25**78

Majority: This is a simple majority vote. 253478Order: First engine determines the result 255378

Find the Invoice Data – Generic Invoices

Freeform (Logic) Rule Sets

Identifying Field Candidates

– Keywords– Logical rules– Expressions– Masks– Validations– Graphical rules– Tables– Groups– Different languages

Keyword(s)

Field Groups

ValidationsNet + VAT = Total Amount

Edit Masks@@######## or RegEx ^(43|45)\d{8}$

Find the Invoice Data – Specific Supplier

Rule Sets for Top Suppliers

Validation against ERP data

Specific data formats

Keyword(s)

Edit Masks

20% of all Invoices

Find the Invoice Data – Learning

Learn Fields that are not accurately recognised

Production Learning– Data characteristics are

learned during manual data entry

Learning Db

Validation Against ERP

ERP Database Search

– Validation against ERP data– Supplier identification– Purchase Order identification– Line-Item validation against

open orders

ERP Db

Validate Exceptions against master data and logical invoice rules

OCR “on the fly” for easy capture of text

Automatic Validations against business rules

Remote Exception Management

Exception Management

Management Information

Dynamic Controller• Real time process management• Prioritise specific vendors• Promote business data

Statistical Analyser• Helps identify and educate

non-compliant vendors

Invoice Reader Financial Reporting

Vendor, PO, Non-PO, Invoice Number, Date, Nett, Tax, Gross– Earlier visibility of invoice data– Centralised resource reference

Benefits– Early visibility – manage cashflow effectively– Vendor education (identify non-PO culprits)– Early payment discounts– Spend analysis and vendor rationalisation– Identify payment duplication– Highlight potentially fraudulent invoice attempts

Displays the status of invoices, incl. discounts, escalations

Transparency of the process during and after the invoice processing

Access to the workflow history, which can be archived after the process as PDF

Dynamic reporting via the selection of invoices in the invoice monitor (can be saved as templates)

Integrated SAP-rights for the user access

Invoice Monitor for Process Control

• Automatic identification of Factual Verification (based on email address etc.)

• Coding templates can be saved

• Electronic accounting stamp for cost centre, GL account, notes etc.

• Access to SAP documents

Factual Verification of Invoices

• Automatic identification and routing to relevant approver(s)

• Access via WEB or SAP GUI

• Approval on line-item level

• Automatic posting after all approvers have confirmed

Invoice Approval via Web or SAP GUI