Accounts Payable Automation

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This presentation covers an overview of an Accounts Payable Automation Solution.

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Accounts Payable Automation

  1. 1. Accounts Payable Automation Why Invoice Automation Matters Michael R. Thomas | AMS Imaging
  2. 2. AP Evolution Continues• Accounts Payable is Strategic • Contract management • Financial reporting and analysis• Do More with Less – Reduce Costs – Improve Efficiency – Eliminate Risk (Ensure Compliance)
  3. 3. Cost of processing an invoice
  4. 4. The Payables process 20 $ – 40 $ Manual Error Handling In & Outbound Calls Invoice data cleanup 2$–5$ 6 $ – 10 $ Print, Paper, Postage Invoice Input, Approval avg 7 days Delay 5 days 2 % discount loss Seller Buyer Invoice Invoice Invoice Invoice Invoice Invoice Creation Delivery Distribution Receipt Verification Approval Payment Payment Payment Payment Payment Payment Check Receipt Delivery Initiation Approval Verification 2 $ – 10 $ 6 $ – 10 $ Processing Processing, Postage 4 $ – 10 $Manual Error Handling Self-Service In & Outbound Calls
  5. 5. So What is Invoice Automation?
  6. 6. Single Pipe Invoice Approval Workflow Data Capture Improve Data Correction Quality Separation Process- ERP Classification Readytm Detect Missing, Extraction Data Invoice Incomplete, or Wrong Data Matching Dispute Resolution No Error Error Confirmation Notification detectedXML/EDI
  7. 7. Single Pipe Invoice Approval Workflow Data Capture Improve Data Resend Quality Invoice Separation Process- ERP Classification Readytm Detect Missing, Extraction Data Invoice Incomplete, or Wrong Data Matching Dispute Resolution No Error Confirmation detectedXML/EDI
  8. 8. Data Capture?
  9. 9. Learn By Example Approach • Remember the location of data Surf Sports  Paragliding Sports  Waverider Street 28 Sky Is the Limit 2 79117 Frieburg 79100Frieburg Germany Germany Invoice Number IN3456789 Inv. Num Inv. Date Date 29th Sept. 2010 IN3456789 29.Sept. 2010 PO Number 1st Sept. 2010 Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx PO Number ---------------------------------------------------------------------------------------------------------------------------------- -------------------------- Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx 1st Sept. 2010 Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx ---------------------------------------------------------------------------------------------------------------------------------- -------------------------- Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx Xxxx xxxxxxx xxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxx xxx,xx xxx,xx xxxxxxxxx xxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx oooooooo oooooooo VAT ID: DE123456789 Bank Details: Sparkasse Freiburg VAT ID: DE99776644 Bank Details: Volksbank Bank Code: 564132157 Freiburg Account: 5454698/7 Bank Code: 4522333 Account: 999888333Slide 9 | Transform 2012 - Capture Driven Processes Slide 9 | Transform 2012 - Capture Driven Processes
  10. 10. Learning a New Supplier1st step: Enter the data, mark the documentfor learning, train it
  11. 11. Learning Confirmation2nd step: With 1 trained document we get50% confidence, so train it again
  12. 12. Learning Done!3rd step: With 2 trained documents we get85% confidence, no more training required
  13. 13. Reduced Data Entry Costs Typical Reduction in Data Entry – 80% within 6 Weeks – 90+% within 6 Months Less Time Typing means more time for value-added tasks!
  14. 14. What about e-Invoicing?
  15. 15. Business Challenges of EDI Do you recognize these business pains? • You know the benefits of e-invoicing but cannot get your suppliers on board. • Your IT staff has limited resources to roll out EDI. • EDI is a very costly and complex solution. • You receive EDI data and want to process and validate this data together with your invoices received by post and email.Step 4: Integrate Electronic Invoices
  16. 16. A common scenario... Additional 15% of 100% 5% the suppliers can 90% be migrated to 15% electronic 30% 80% 70% 60% 30% 50% 70% This represents 40% 30% of the 30% invoice volume 38% 20% 10% 10% 2% 0% Suppliers Invoice volume Paper/Credit Cards Paper/Fax Electr. Invoices EDIStep 4: Integrate Electronic Invoices
  17. 17. e-Transactions Seller Buyer Invoicing System Accounts Payable System ERP System ERP System eInvoice eInvoice Sender Instant electronic Receiver delivery (2-3 sec) Postal Service (2-3 days) Open, sort, dis Envelope tribute mail Stamping (1-2 days) MailStep 4: Integrate Electronic Invoices
  18. 18. e-Transactions Seller Buyer Invoicing System Accounts Payable System ERP System ERP System EDI eInvoice via Receiver VAN Postal Service (2-3 days) Open, sort, dis Envelope tribute mail Stamping (1-2 days) MailStep 4: Integrate Electronic Invoices
  19. 19. Both Sides Win... Seller Buyer • Advantages of Step • Single click to get invoice 1, 2, 3 into Buyer’s ERP • No mail room handling • No printing, envelope, stamp • No scanning, no OCR correction s • No Data Entry • No manual handling • Shorter DSO • Use notification to help migrate suppliers (days of sales outstanding)Step 4: Integrate Electronic Invoices
  20. 20. What About Approvals & Coding?
  21. 21. Integrated Workflow
  22. 22. Invoice Data Captured
  23. 23. Pre-Defined Rules
  24. 24. GL Coding and Approvals
  25. 25. Simple & Familiar Retrieval
  26. 26. Seamless Integration with ERP
  27. 27. Adding up the savings Approx. Savings per invoice: Control paper flow: $10+ Reduce Manual Labor: $1+ Enhance process transparancy : $1.50+ Add Electronic: $1.50+ Improve Data Quality: $3+ Automatic Feedback & Issue resolution: $5+= Approx. savings from $22 per invoice Reduction of errors & dispute costs with each phase
  28. 28. Next Steps• Complimentary ROI Profile• White Paper(s)• Custom Demonstration
  29. 29. Thank You! Thank You! For More Information, Contact: Michael R. ThomasDirector – Solution Development 631-406-9916 mthomas@amsimaging.com http://www.amsimaging.com

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