Accounts Payable Automation

Accounts Payable Automation

Why Invoice Automation Matters

Michael R. Thomas | AMS Imaging

AP Evolution Continues

• Accounts Payable is Strategic• Contract management• Financial reporting and analysis

• Do More with Less– Reduce Costs– Improve Efficiency– Eliminate Risk (Ensure Compliance)

Cost of processing an invoice

The Payables process

Self-Service

Invoice Distribution

Invoice Approval

Invoice Receipt

Invoice Verification

PaymentDelivery

Payment Approval

Payment Initiation

Payment Verification

Invoice Creation

PaymentReceipt

Invoice Delivery

Payment Check

BuyerSeller

2 $ – 5 $Print, Paper, Postage

Delay 5 days

6 $ – 10 $Invoice Input, Approval avg 7 days

2 % discount loss

2 $ – 10 $Processing

6 $ – 10 $Processing, Postage

4 $ – 10 $Manual Error Handling

In & Outbound Calls

20 $ – 40 $Manual Error HandlingIn & Outbound Calls Invoice data cleanup

So What is Invoice Automation?

InvoiceApprovalWorkflow

ERP

InvoiceMatching

Dispute Resolution

Notification

Single Pipe

Errordetecte

d

Invoice

Process-Readytm

Data

Improve Data

Quality

Detect Missing,

Incomplete,or Wrong Data

Data Capture

SeparationClassification

Extraction

ConfirmationNo Error

detected

Correction

XML/EDI

InvoiceApprovalWorkflow

ERP

InvoiceMatching

Dispute Resolution

Single Pipe

Process-Readytm

Data

ConfirmationNo Error

detected

Invoice

Improve Data

Quality

Detect Missing,

Incomplete,or Wrong Data

Data Capture

SeparationClassification

Extraction

Resend Invoice

XML/EDI

Data Capture?

Learn By Example Approach

| Transform 2012 - Capture Driven ProcessesSlide 9

Inv. Num

IN3456789

Inv. Date

29.Sept. 2010

PO Number

1st Sept. 2010

Paragliding SportsSky Is the Limit 279100FrieburgGermany

VAT ID: DE99776644 Bank Details: Volksbank FreiburgBank Code: 4522333 Account: 999888333

Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx------------------------------------------------------------------------------------------------------------------------------------------------------------Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx

Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxxXxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx

oooooooo

Invoice Number

IN3456789

Date 29th Sept. 2010

PO Number 1st Sept. 2010

Surf SportsWaverider Street 2879117 FrieburgGermany

VAT ID: DE123456789Bank Details: Sparkasse FreiburgBank Code: 564132157Account: 5454698/7

Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx------------------------------------------------------------------------------------------------------------------------------------------------------------Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx

Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx

Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx

Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx

Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx

Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx

oooooooo

•Remember the location of data

Slide 9 | Transform 2012 - Capture Driven Processes

Learning a New Supplier1st step: Enter the data, mark the document for learning, train it

Learning Confirmation2nd step: With 1 trained document we get 50% confidence, so train it again

Learning Done!3rd step: With 2 trained documents we get 85% confidence, no more training required

Reduced Data Entry Costs

Typical Reduction in Data Entry– 80% within 6 Weeks

– 90+% within 6 Months

Less Time Typing means more time for value-added tasks!

What about e-Invoicing?

Business Challenges of EDI

Do you recognize these business pains?

• You know the benefits of e-invoicing but cannot get your suppliers on board.

• Your IT staff has limited resources to roll out EDI.

• EDI is a very costly and complex solution.

• You receive EDI data and want to process and validate this data together with your invoices received by post and email.

Step 4: Integrate Electronic Invoices

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Suppliers Invoice volume

Paper/Credit Cards Paper/Fax Electr. Invoices EDI

10%

5%

15%

70%

2%

38%

30%

30%

Additional 15% of the suppliers can

be migrated to electronic

This represents 30% of the

invoice volume

Step 4: Integrate Electronic Invoices

A common scenario...

e-Transactions

Accounts Payable System

Invoicing System

Postal Service

(2-3 days)

ERP System

EnvelopeStamping

Mail

Open, sort, distribute

mail(1-2 days)

Seller

Buyer

ERP System

Step 4: Integrate Electronic Invoices

eInvoiceSender

eInvoiceReceive

rInstant

electronic delivery (2-3

sec)

e-TransactionsAccounts Payable System

Invoicing System

Postal Service

(2-3 days)

ERP System

EnvelopeStamping

Mail

Open, sort, distribute

mail(1-2 days)

Seller

Buyer

ERP System

Step 4: Integrate Electronic Invoices

eInvoiceReceiver

EDI via

VAN

EDI via

VAN

Both Sides Win...

Seller

• Single click to get invoice into Buyer’s ERP

• No printing, envelope, stamps

• No manual handling• Shorter DSO

(days of sales outstanding)

Buyer

• Advantages of Step 1, 2, 3

• No mail room handling

• No scanning, no OCR correction

• No Data Entry

• Use notification to help migrate suppliers

Step 4: Integrate Electronic Invoices

What About Approvals & Coding?

Integrated Workflow

Invoice Data Captured

Pre-Defined Rules

GL Coding and Approvals

Simple & Familiar Retrieval

Seamless Integration with ERP

Approx. Savings per invoice:Control paper flow: $10+ Reduce Manual Labor: $1+ Enhance process transparancy : $1.50+Add Electronic: $1.50+Improve Data Quality: $3+Automatic Feedback & Issue resolution: $5+

= Approx. savings from $22 per invoice

Reduction of errors & dispute costs with each phase

Adding up the savings

Next Steps

• Complimentary ROI Profile

• White Paper(s)• Custom

Demonstration

Thank You!

Thank You!For More Information, Contact:

Michael R. ThomasDirector – Solution Development

631-406-9916mthomas@amsimaging.com

http://www.amsimaging.com