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AP Invoicing Service
May 18th, 2015
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Mission and Vision
MissionDevelop a new service team responsible for the intake and processing of vendor invoices on behalf of the campus departments.
Vision1) All Purchase Order invoices are delivered to a single location
2) The new service team provides scanning, data entry, and quality assurance for invoice payments
3) Two-way matching reduces the need for Fiscal Officers to approve low value invoices
4) Departments can easily retrieve invoice payment status and request assistance with payment disputes
5) High-volume and high-spend vendors are transitioned to strategic invoicing methods, payment terms, and settlement options
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Why Now?
Invoicing over the last 12 months (March ‘14 thru Feb ’15)• 10,500 invoices processed by campus departments each month
• 8,482 unique vendors
• 555 different initiators within the financial system
• 37.5 days from Invoice Date to date payment request is entered
• 2.5 days from when payment is entered to full approval
• 37% of invoices are paid late, according to invoice terms
• 3% of our invoices have early payment discount terms
• 0.3% of vendors have default discount terms established
Top 50 Vendors (by volume)• 58,033 invoices (45%)
• $34,307,000 in spend (8%)
• Potential early payment discounts (1%): $343,070
• Total early payment discounts captured over last 12 months: $23,447
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Why 2-way matching?
Spend to Volume Table
Invoice Volume Invoice Spend
Count % of Total Spend % of Total
Less than $500 83,748 64.2% $ 11,949,748 3.0%
$500 - $999 14,833 11.4% $ 10,550,694 2.6%
$1,000 - 2499 13,738 10.5% $ 21,757,426 5.4%
$2,500 - 4,999 7,757 5.9% $ 27,605,372 6.8%
$5,000 - 9,999 4,293 3.3% $ 30,149,719 7.5%
$10,000 - 20,000 2,697 2.1% $ 37,469,405 9.3%
> than $20,000 3,337 2.6% $ 264,216,935 65.4%
Totals 130,403 100.0% $ 403,699,298 100.0%
92% 18%
8% 82%
76% 6%
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Why Now?
“Cultivate a Culture of Organizational Excellence, Effectiveness and Stewardship” – Chancellor’s Vision
Plan
Top Reasons:1. Reduce overall workload for campus departments2. Reduce errors through better quality control of
invoice data3. Increase discount capture rate and potential
revenues through strategic settlement options4. Provide single channel of communication for vendors
and reduce fraud5. Better alignment with best practices and procedures
implemented by other Universities
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Our Approach
Phase 1: Information Gathering (January to July)• Develop a partnership between Accounts Payable, Contracting
Services, and Shared Services Center• Solicit campus feedback and input into processes, visit other UCs to
learn best practices, and identify stakeholder concerns• Develop process flows, staffing requirements, and system changes• Establish the Strategic Vendor Management team and new menu of
payment terms
Phase 2: Pilot, Measure, Report (July to January)• Service team to begin processing invoices on behalf of units already
supported by the Shared Services Center• Implement and monitor 2-way matching workflow changes• Identify and measure key performance indicators (KPIs), comparing
service team to the rest of campus invoice processing• Revise processes as necessary during the pilot
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Our Approach
Phase 3: Academic Pilot (January ‘16 to July)• Service team to begin processing invoices on behalf of
academic units willing to participate as early adopters• Revise process flows to accommodate specialized academic
needs, such as Uniform Guidance requirements• Continue to measure KPIs, including error rate and number
of disputes due to 2-way matching• Measure increased discount capture rates due to efforts of
the Strategic Vendor Management team• Gauge readiness of service team to take on balance of
campus invoices
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Questions / Comments
Project Contacts:
Mike Kuhner
Manager, Central AP/Travel
Megan Villasenor
Operations Manager, SSC
