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Best Practices for Optimizing Procure-to-Pay
with
Tungsten Workflow
Diann FergusonDirector of Business DevelopmentTungsten Network
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
Todays Agenda
Discuss processing invoices for payment
Consider PO invoice exceptions and associated impacts
Examine Tungsten Workflow, its capabilities and how it fits in an end-to-end AP automation solution
Summarize key advantages of Tungsten Workflow and what makes it unique
Q&A
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
Different perspectives and their implications on AP3
CEOOur cost of capital and material costs are too high.
CFOMy cost of accounts payables is not state-of-the-art and I have poor visibility to key metrics. Financial Analyst
Use of cash discounts is
low, cost of capital is rising.
SuppliersDoing business with that company is difficult as they are unable to tell when they pay their invoices.
AccountingWe cannot say which invoices we have received across different departments and we have no control over the time-to-payment.
PurchaserWe could lower the cost of goods if we could make systematic use of cash discounts.
Accounts PayablesWe spend up to 50% of our time chasing paper and responding to calls and emails from suppliers requesting status of invoice or complaining about late payment.
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
Paying received invoices a simple task Right?
PO invoices are matched against POs (2-way) and goods receipts (3-way)
Exceptions are handled to resolution
Non-PO invoices receive GL coding or distribution
2-way PO and Non-PO invoices receive approvals
Non-PO invoices receive financial authorization for payment
Invoice transactions are posted to the ERP system for payment
Period-end accruals are managed and posted for invoices received though not yet paid
Reporting and KPI management takes place
Invoices and associated histories are maintained for audit purposes
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
What does finance want from AP?
Accuracy of AP Making correct payments in accordance with contractual terms
Control over AP Optimizing working capital, payment timing and financing
Efficiency of AP Processing invoices faster; managing days payable outstanding
Cost of AP Expending fewer resources while maintaining performance
Information from AP Providing visibility into actual payments vs. contractual terms; improved reporting
Compliance Alignment with guidelines, regulations and/or legislation
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
The business impact of PO invoice exceptions
Source: Rooting out Invoice Exceptions:The Path to Straight-Through Processing
31% of PO invoices result in an exception
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
The manpower impact of PO invoice exceptions
Source: Rooting out Invoice Exceptions:The Path to Straight-Through Processing
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
Top-three causes of PO invoice exceptions
Source: Rooting out Invoice Exceptions:The Path to Straight-Through Processing
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
End to End Accounts Payable Process Flow
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
An invoice automation workflow solution to streamline AP processing
Invoice automation workflowo PO invoice processing
AutoMatch, Exception handling, Auto Posting
o Non-PO invoice processing GL coding, Approval, Auto Posting
o Core Platform Integration SAP, Oracle E-Business Suite and JD Edwards
Reporting
Tungsten Workflow
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
What does Tungsten Workflow do?
Workflow routing Automatically
Ad hoc
Conditional routing (rules based)
Multi-level approvals
Standards-based, certified/validated integration GL coding honoring business unit/company security, tolerance matching rules
Process automation examples duplicate invoice checking
automatic GL coding or distribution
automatic matching including looping cycle when invoices precede goods receipts
automatic transaction posting to ERP system for payment
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
What does Tungsten Workflow do? (continued)
Automatic email notification
Reminders and escalation for delayed processes
Notes
User Proxy for backup while away
Detailed history and workflow inquiry auditable
Tungsten Forms (optional component) to develop custom workflow plug-ins for processes beyond accounts payable
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
Reporting is critical Work in process Work item history Backlog reports Productivity reports Easily create and schedule
custom reports
High Impact Charts
Export to All Popular File Formats
Ability to drill down to detail / view backing documents
Excel PDF Word XML RTF
43.250.4
30.5
0
20
40
60
Days Payable Outstanding
2013 2014 2015
5
8
2
4
Assigned Invoices >2 days
Dana ~ 5 Toby ~ 8
Janet ~ 2 Michael ~ 4
0
50000
100000
Jan Feb Mar Apr May
Days to Pay
Paid > 30 Paid < 30
Searching and Reporting Its just as important to be able to get data out of the system
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
Mobile CapabilitiesMobile device enabled Tablets and SmartPhones
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
Invoice Status Service
Electronically extracts invoice status data from buyers ERP systems and presents it to suppliers
24/7 visibility
Up-to-date/accurate information on each invoice: o Received, Approved, Paid, Hold, in Exception or
Rejected
o Payment date is included with Approved status
Answers the two most common supplier questions:1. Where is my invoice?2. When will I get paid?
Automatically updated as a natural byproduct of workflow processing
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
Tungsten Workflow vs. native ERP workflow
There are numerous advantages of using Tungsten Workflow over native ERP workflow, including but not limited to:
Tungsten Workflow users do not require ERP login credentials and associated ERP licenses to perform work including but not limited to GL coding or distribution and approvals and exception handling.
Tungsten Workflow does not require extensive IT technical skills to set up and maintain workflow processes, which enables our clients to more readily update existing processes and add new workflow processes without consuming scarce IT resources or outside consultants.
Because Tungsten Workflow is tightly-integrated yet external to your ERP system, it can be used for a wide variety of other processes external to the ERP.
What we do better than native ERP workflow choices
Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.
What if you have already implemented AP workflow?
Common issues with previously implemented workflow:
The solution provider you bought from subsequently sold their company to another solution provider who offers a competing solution, and the solution you have in place isnt their flagship offering.
The solution you thought you bought wasnt what you ended up with after the ink dried on the contracts you signed.
You want to do straight-through proces
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