Upload
nicholas-ambrose-robertson
View
214
Download
1
Tags:
Embed Size (px)
Citation preview
The Next Step in
Financial Management and
Automation
Neil Robertson CEO
Compleat Software Limited
A lifetime of learning
• 1976 Trainee AP clerk – Industrial Acoustics
• 1979 British Olivetti
• 1983 Team Systems Group
• 1989 Misys Plc
• 1995 Great Plains (MS Dynamics GP)
• 2008 Compleat
• Today 5 years and £3m invested to date
• Tomorrow It is already here
Quick Survey
• Purchase order / purchase invoice approval process– Manual
– Email / Excel or equivalent
– Full automated integrated into Sage
• Percentage of invoices received that have an official Purchase Order– Less that 20%
– Less than 50%
– Less than 75%
Purchase to Pay Automation
• So why is this function still predominately manual?– Current process works OK (suppliers get paid)
– Budget Holder’s responsible for own spend (not a finance problem)
– Budget Holders will never co-operate
– Too many people, so too hard to implement
– The cost of automation is not justifiable
– It is not finance department’s responsibility
– Too many other priorities
– Never really considered it
• Looking at the bigger picture– The B2B world is changing
– It is going to impact your business
– Many organisations have already taken the first step
The Bigger Picture
If automation was both easy and affordable….
The Bigger Picture
• What has changed?
– Focus on reducing the cost per financial transaction
• Automation of customer / supplier interaction
• Remove the paper
• Increase speed and productivity
• Increase accuracy
• Enable timely payment
– Available from a growing number of suppliers
• Growing Adoption
• It will become the default method of trading
• Simply huge productivity gains
• Prices will reflect levels of automation adopted
• “Premium prices” for manual processes
RequisitionRequests to
purchase
Purchase Order
PO Document
Receipting
Goods / Services
Purchase Invoice
Capture and Approval
Sage Software
Paper / EmailVerbal Orders
The Bigger Picture
WebsiteOnline
purchasing
Sales Order Processing
PO Document
Delivery
Goods / Services
Sales Invoice Production
Timeliness & Accuracy of
Payment
Supplier ERP Software
Quality of PO
Quality Delivery
Invoice Accuracy
Budget Holders “Tool Set”
• Very good at their job– How many are trained in “procurement”
• Because they are all Procurement Managers
– Is there a standard process for
• Formal approval process of every purchase made
• Maintaining accurate budget availability
• Maintaining records of goods / services supplied
• Reconciliation of PO to PI pre-approval
• Auditable validation of reconciliation
– Simple process for Credit Note requests
• They will just pay overcharged amounts – Too Hard!
RequisitionRequests to
purchase
Purchase Order
PO Document
Receipting
Goods / Services
Purchase Invoice
Capture and Approval
Sage Software
Supplier Website
(Punch Out)
Supplier Portal
Catalogue Management
workflow workflowworkflow
The Bigger Picture
WebsiteOnline
purchasing
Sales Order Processing
PO Document
Delivery
Goods / Services
Sales Invoice Production
workflow workflow workflow
100% AccuratePayment
Supplier ERP Software
Quality of PO
Accuracy of PO
Zero Cost Processing of PO
Quality of PO
Accuracy of PO
Formal OrderWith terms
.PDF & Attachments
Auto Acknowledgement
Auto Receipting
Electronic / OCR Invoice
ZERO TOUCH
The Bigger Picture
• This is ALREADY standard best practise– All larger organisations
– Growing number of smaller organisations
• The trend of adoption will continue– Removing the need to create paper
– ERP to ERP straight through processing
– It will replace scanning and OCR methodologies
• It is founded on
– Digital Purchase Orders
– Purchase to Pay functionality
– NOT Document Management and OCR of purchase invoices
Purchase to Pay Benefits
Extending your ERP Functionality
Budget Holders Benefits
• Primary Requirements– Simple and fast Purchase Order process
– Fast and effective formal & auditable approval process
– Real time budget availability information
– Simple and fast purchase invoice approvals
– Suppliers get paid on time
• Current manual processes– Slow and time consuming
– Process often ignored (no formal PO)
– Manual budget validation
– Slow approval process
– Tedious Purchase Order v Purchase invoice reconciliation
– Looks right – gets approved for payment
Suppliers Benefits
• Formal purchase orders– Clear instructions
– Clear terms of supply and payment
– Payment date is about execution and accuracy of billing
• Prefer Customers with good P2P controls– Suppliers know PO number is essential on Sales
Invoices
– Over billing leads to delays and credit notes
– Accurate billing enables fast approvals
– Good customers always pay on time
– Good customers get preferential treatment (and pricing)
Finance Department Benefits
• Current processes– No visibility of spend until purchase invoice received
/approved and posted
– Budgets based on last month’s management accounts
– Paper intensive, slow, things get lost
– Supplier payments late
• P2P Automation– Full visibility of spend from “requisition”
– 100% automated and auditable PO approval processes
– Full commitment accounting
– Fully automated budget control
– 100% control over suppliers
– 100% automated Purchase Invoice approvals
Conclusions
• 95% of P2P users are NOT finance department users
– 65% are Requisitioner's
– 30% are Approvers
• Biggest beneficiaries of P2P are Budget Holders
• Finance benefits are delivered by default
• Focus on Budget Holders
– Extremely fast and simple requisition generation
– Fully automated budget and approval process
• From any connected device / email 24 x 7
– Auto reconciliation on PI capture of PO / Receipt / PI, highlights errors
– Extremely fast PI approval for those that are correct
– Automated control of Credit Note requests for those that are wrong
– Final Approval – POSTED direct to Purchase Ledger for payment
Conclusions
• Budget Holders – make their budget go further– Simple to get competitive quotes
– Consolidation of suppliers for better pricing
– Contract Management
• Review prior to termination date
• Alternative quotes
– 100% validation of purchase invoice to purchase order
• Credit notes!
• Productivity savings
• Spend Visibility and Control
Conclusions
• It is only a case of WHEN your business automates P2P– How much it costs v how much you would save
• Compleat priced to be affordable / justifiable
– How much of your resource it requires
• 50 user sites – about 2 - 3 days
– How easy it is to Use
• Make up your own mind – have a look at the break out
– How many steps you take
• Document Management for PI approval is a dead end
Compleat Overview
Compleat Purchase to Pay
• Single UI / transaction for 100% visibility– Quotation requests
– Requisitions
– Budget availability
– Approvals
– Purchase Order Generation
– Receipting
– Purchase invoice capture with auto reconciliation
– Approvals
– Accounting software posting
– Dashboards and Reporting
Compleat P2P
• Deployment Options– 100% browser application – any device 24 x 7
– Cloud and / or local perpetual license
• Pricing– To remove the cost and complexity of P2P automation
– Extremely easy to use
– Very Fast to deploy
– Self-sufficiency post live
– Starts at £15 per user per month – reducing as user count increases
• Affordable and financially justifiable for all
Selection of customersHospitality Property Finance Marketing CharityEducation
Health
Thank you for your time