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© Copyright 2014 Wellesley Information Services, Inc.
All rights reserved.
Excerpt from
Best practices to design and configure payment methods for accounts payable, accounts receivable, and cash management
Brian Shannon Dolphin
1
In This Session …
• Explore options for designing a successful global payment
platform
• Take an in-depth look at how to plan, launch, and track your SAP
working capital initiatives.
• Hear best practices from the field to tackle the challenges of a
global payment solution for accounts payable (AP), accounts
receivable (AR), and cash management.
• A harmonized approach for optimizing AP and AR that delivers
significant benefits which span the categories of cost
containment, cash flow optimization, and risk mitigation
• How to leverage automated capture technologies, workflow
models, and document storage options that don’t deviate from
organizational standards
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What We’ll Cover
• Near-Cash Processes: an Overview
• Accounts Receivable & Cash Application
• Accounts Payable & Optimizing Cash
• Integration Challenges
• Benefits of Harmonized Projects
• Wrap-Up
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Near-Cash Processes: an Overview
• AR & AP Process Integration Touch-points:
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Opportunities in Accounts Payable
• Increasing volumes due to growth/acquisition
Improve automation of capture
Reduce non-value added tasks
• Centralization: Shared Service Center, Outsourcing
Multi-language, multi-country processing capable
Mitigate vs. high error/loss rates from outsourced process
• Improve cycle times
Increase straight-through processing
Focused exception handling
• Transparency and Measurement
Enhance KPI reporting
Provide insight to internal and external constituents
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Opportunities within Accounts Receivable
• Increasing volume of ‘in-house’/manual transactions
Timing issues of decoupled payments/remittance advice receipt
Extremely large payments that need to be applied and matched
• Low Auto-Match rates:
Accurate identification of payee or invoice details
• Discrepancies & exceptions rule the process
Exception handling for discounts earned/unearned, other
discrepancies
Lack of integration with other parts of the organization to
determine appropriate handling of discrepancies
• Special issues: rebates, retroactive pricing, re-billings
6
Capture: Lockbox
• Common Lockbox Problems
• Cost
• Accuracy
• Rigid Data Template – BAI2
• Inflexibility around deduction processing
• Data access: storage, archival policies and costs vary widely
• Mail efficiency – how much time does it really save?
• What about checks that are mailed to corporate office?
• Creates bank ‘stickiness’; limits flexibility
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Capture: Lockbox – Deposit & Process
InfoCenter Dashboard,
Image linked to every
payment
Partial Application, On
Account, Exception Detail,
Master Data
Index
Image with
Payment &
Process
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Capture: Unstructured Remittance Advice
• Documents are unstructured or variable in nature
• OCR solutions for in-house remittance processing
Improved hit rates
Reduced cycle time
Less reliance on costly lockbox
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Capture: Structured Remittance Advice
• Remittance Advice & Info Gateway:
Streamlined processing
100% accuracy
Address inbound ACH or wire transfers with ‘decoupled’
remittance advice
Pair the deposit with the created payment advice
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Processing: Image & Transactions
• Validating Data to Save Time and Money
• Automate key tasks and leverage SAP, user exits
• Segregate non-conforming payments
• Display image next to transaction for processing
• Link image directly to FI clearing document
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Processing: Document Management
• Linking Images to SD Documents
• All transactions within SD Document Flow could have image
attachments – how to access many at once?
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Capture Solution Options
• Optical Character Recognition (OCR)
Header & line-level capture options – HIGHLY unstructured
documents
Validation vs. Vendor and PO extracts from SAP
Business Rules (e.g. Tax) managed via Invoice Gateway into SAP
• Electronic options for automated capture
Electronic Invoicing (eInvoicing) from business hub or partner
Traditional EDI can be “normalized” through Invoice Gateway
Vendor portal offers “flipping” PO items directly into invoice
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Transition Invoice Data and Image
• The invoice image and data are linked and stored securely
Within
SAP
Invoice data stored in AP tables,
whether posted or not
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Your Turn!
How to contact us:
Brian Shannon
Twitter: BrianSAP
Please remember to complete your session evaluation
15
Disclaimer
SAP, R/3, mySAP, mySAP.com, SAP NetWeaver®, Duet™®, PartnerEdge, and other SAP products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and
service names mentioned are the trademarks of their respective companies. Wellesley Information Services is neither owned nor controlled by SAP.