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TIS in the Finance Department. Finance Challenges. Cashflow management DSO v DPO Visibility of information Manage accruals Resource management Staff turnover Risk, training cost, consistency Vendor and Exception management Vendor education – PO reference Invoice duplication - PowerPoint PPT Presentation
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TIS in the Finance Department
Cashflow management– DSO v DPO– Visibility of information– Manage accruals
Resource management– Staff turnover– Risk, training cost, consistency
Vendor and Exception management– Vendor education – PO reference– Invoice duplication– Out-of-tolerance transactions
Invoice approval– No control, delays process
Compliance– Process audit, Management information
Finance Challenges
Accounts Payable Sub-Processes
Source: BearingPoint 2007
Accounts Payable Sub-Processes
Source: BearingPoint 2007
66%Where TIS can help
Vendor Analysis
Mainly
Non P
O
PO & B
lanke
t Ord
erEDI
EDI + Paper
Paper
PURCHASING M
ETHOD TRANSACTION TYPEPO &
Non
PO
Audit
How the process works – Step One
Post Receipt
Scanning
Document ClassificationInvoices
Cheques
Remittance
Rejection Letters
Fax Receipt
Email Receipt
Digital Mailroom
Volume Report
Audit Audit
How the process works – Step Two
Post Receipt
Scanning
Document ClassificationInvoices
Cheques
Remittance
Rejection Letters
Fax Receipt
Email Receipt
Digital Mailroom
Invoice Reader
Freeform OCR
Engine Tuning
PO / Non PO
Header, Footer & Line item
Data Correction
Self Learning
Multiple Languages
Data Extraction
ERP System
Statistical ReportingVolume Report
Audit Audit Audit
How the process works – Step Three
Post Receipt
Scanning
Document ClassificationInvoices
Cheques
Remittance
Rejection Letters
Fax Receipt
Email Receipt
Digital Mailroom
Invoice Reader
Freeform OCR
Engine Tuning
PO / Non PO
Header, Footer & Line item
Data Correction
Self Learning
Multiple Languages
Data Extraction
Vendor Validation
Units
Pricing
Multi Currency/VAT
Duplicate Invoice Check
2/3/4 way match
Customer RulesValidation
ERP System
Statistical ReportingVolume Report Financial
Reporting
AuditAudit Audit Audit
How the process works - Step Four
Post Receipt
Scanning
Document ClassificationInvoices
Cheques
Remittance
Rejection Letters
Fax Receipt
Email Receipt
Digital Mailroom
Invoice Reader
Freeform OCR
Engine Tuning
PO / Non PO
Header, Footer & Line item
Data Correction
Self Learning
Multiple Languages
Data Extraction
Vendor Validation
Units
Pricing
Multi Currency/VAT
Duplicate Invoice Check
2/3/4 way match
Customer RulesValidation
Exception Management
Approval Processing
Discrepancy
Resolution
Vendor Management
Multi Currency/VAT
Resource Analysis
Workflow
ERP System
Statistical ReportingVolume Report Financial
ReportingWork in Progress
Reporting
Improve Business Outcome
System will scale in volume and applications• Accounts Receivable• Customer Services• HR• others…
Solution Summary
Early visibility of transactional data
a) Operational • Maximise AP resource• Creates efficient exception
and rejection handling• Reduces training
b) Business• Assists vendor education• Capitalise on early payment discounts• Vendor rationalisation
Full audit of processIdentifies duplicateinvoices and fraud
Questions
HOW INVOICE READER WORKS
Solution Overview
Provides “Fully Featured” Webbased access for remote
workers
Approval
Invoice Reader solution
Processed Data andImages
ERP Master Data
Secure Web Access
Customer Rules
Exception Management
Archive Link
SAP GUI
Management Information
Throughput
System Tuning
Financial Reports
Management Information
Work in Progress
Financial Reports
SLA Statistics
Paper
EDI
Fax
ERP GUI
ERP
Solution Overview
Provides “Fully Featured” Webbased access for remote
workers
Approval
Invoice Reader solution
Processed Data andImages
ERP Master Data
Secure Web Access
Customer Rules
Exception Management
Image Repository
Management Information
Throughput
System Tuning
Financial Reports
Management Information
Work in Progress
Financial Reports
SLA Statistics
Paper
EDI
Fax
Scanners and Image Quality
Kodak i1420
Kodak i660
Read the Invoice
Optical Character Recognition
Engine Comparison Algorithms
Field Level Engine Definitions Dates Amounts etc...
Engine 1 25***8
Engine 2 2*5378
Engine 3 253478
Engine 4 2*34*8
Engine 5 25***8
Virtual Engine ResultSafe: All engines must return the same result.
2****8
Normal: Only engines that returned a result are counted.
25**78
Majority: This is a simple majority vote. 253478Order: First engine determines the result 255378
Find the Invoice Data – Generic Invoices
Freeform (Logic) Rule Sets
Identifying Field Candidates
– Keywords– Logical rules– Expressions– Masks– Validations– Graphical rules– Tables– Groups– Different languages
Keyword(s)
Field Groups
ValidationsNet + VAT = Total Amount
Edit Masks@@######## or RegEx ^(43|45)\d{8}$
Find the Invoice Data – Specific Supplier
Rule Sets for Top Suppliers
Validation against ERP data
Specific data formats
Keyword(s)
Edit Masks
20% of all Invoices
Find the Invoice Data – Learning
Learn Fields that are not accurately recognised
Production Learning– Data characteristics are
learned during manual data entry
Learning Db
Validation Against ERP
ERP Database Search
– Validation against ERP data– Supplier identification– Purchase Order identification– Line-Item validation against
open orders
ERP Db
Validate Exceptions against master data and logical invoice rules
OCR “on the fly” for easy capture of text
Automatic Validations against business rules
Remote Exception Management
Exception Management
Management Information
Dynamic Controller• Real time process management• Prioritise specific vendors• Promote business data
Statistical Analyser• Helps identify and educate
non-compliant vendors
Invoice Reader Financial Reporting
Vendor, PO, Non-PO, Invoice Number, Date, Nett, Tax, Gross– Earlier visibility of invoice data– Centralised resource reference
Benefits– Early visibility – manage cashflow effectively– Vendor education (identify non-PO culprits)– Early payment discounts– Spend analysis and vendor rationalisation– Identify payment duplication– Highlight potentially fraudulent invoice attempts
Displays the status of invoices, incl. discounts, escalations Transparency of the process during and after the invoice processing Access to the workflow history, which can be archived after the process as PDF Dynamic reporting via the selection of invoices in the invoice monitor (can be saved as templates) Integrated SAP-rights for the user access
Invoice Monitor for Process Control
• Automatic identification of Factual Verification (based on email address etc.)• Coding templates can be saved• Electronic accounting stamp for cost centre, GL account, notes etc.• Access to SAP documents
Factual Verification of Invoices
• Automatic identification and routing to relevant approver(s)• Access via WEB or SAP GUI• Approval on line-item level• Automatic posting after all approvers have confirmed
Invoice Approval via Web or SAP GUI
