TECHNOLOGYINSIGHTSERIES                                                             SAP                                   ...
AutomationSolutions for         Table of ContentsSAPTable of Contents                       Executive Summary................
AutomationSolutions for        Executive SummarySAP                 A significant shift is starting to shake traditional A...
AutomationSolutions for        The ERP EnvironmentSAP                   To understand the current state of invoice automat...
to continue selling the ERP client additional ERP functionality. The bolt-on alternativeAutomationSolutions for      provi...
Automation         SAP solution extensions are SAP branded and marketed, meaning that they are onSolutions for      the SA...
AutomationSolutions for                     AP Challenges and Automation GoalsSAP                    The biggest invoice m...
Automation           The Case for Invoice AutomationSolutions for        We believe AP automation is emerging as one of th...
Automation           Components of the Invoice Automation UniverseSolutions forSAP                  The invoice automation...
Automation               Content ManagementSolutions for            The delivery, storage, management and disposition of e...
Automation             Tangible Benefits of Invoice AutomationSolutions for          Clearly the benefits of invoice autom...
Automation          Purchase-to-Pay and the Role of Invoice AutomationSolutions forSAP                 Invoice automation ...
Automation         Best Practices for Touch-less APSolutions forSAP                Eliminating human touch points is a bes...
Automation                         •	 Workflow Configuration – Administrators need the ability to configure andSolutions f...
AutomationSolutions for                     Key Performance IndicatorsSAP                     The accounts payable process...
AutomationSolutions for         Basware OverviewSAP                     Basware is the global leader in purchase-to-pay so...
In 2012, Basware launched Alusta, a cloud-based platform for business-to-businessAutomationSolutions for        transactio...
increase or decrease at any point in the future. CloudScan is yet another way invoicesAutomationSolutions for        can b...
AutomationSolutions for                      Basware Case StudySAP                   Invoice Automation Adds Value to Acco...
AutomationSolutions for         Direct Insite OverviewSAP                  Direct Insite Corporation is a global provider ...
Automation           Suppliers can issue invoices and credit memos and respond to buyer inquiries withSolutions for       ...
Automation            and most any other parameter. The scanned images are typically PDF or tiff filesSolutions for       ...
AutomationSolutions for                     Direct Insite Case StudySAP                   Siemens Global Shared ServicesCa...
Automation           Suppliers invoicing Siemens’ 50+ operating companies can submit electronicSolutions for        invoic...
AutomationSolutions for         Dolphin OverviewSAP                      Founded in 1995, Dolphin makes crucial business o...
Overall, the Dolphin Process Tracking System for SAP Accounts Payable (PTS-AP)AutomationSolutions for         provides use...
Automation           Vendor Portal FunctionalitySolutions for        The Dolphin vendor portal, powered by Taulia, is easi...
Automation             Reporting and AnalysisSolutions forSAP                    Dolphin’s PTS-AP provides robust and easy...
Dolphin Case StudyAutomationSolutions forSAPCase Study          IMS Health                    The leading provider of info...
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
Automation Solutions for SAP Solutions for Touch-less Accounts Payable
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Automation Solutions for SAP Solutions for Touch-less Accounts Payable

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Automation Solutions for SAP: Solutions for Touch-less Accounts Payable is a PayStream Advisors Technology Insight Series report focused on SAP-specific e-Payables solutions, including invoice automation and payments, which leverage SAP capabilities and have seamless integration with SAP. It will highlight the advantages of solutions that work within SAP as well as those solutions that sit outside SAP and discuss the relative merits of both approaches.

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Transcript of "Automation Solutions for SAP Solutions for Touch-less Accounts Payable"

  1. 1. TECHNOLOGYINSIGHTSERIES SAP Automation Solutions for SAP: Solutions for Touch-less Accounts PayableFeaturing Insights on...ERP Systems versus Bolt-onThe SAP UniverseAP Challenges and Automation GoalsComponents of Invoice AutomationElectronic Invoice and Workflow MatchingBest Practices for Touch-less APKey Performance IndicatorsUnderwritten in part by: Basware Direct Insite Dolphin ReadSoft SAP Q2 2012www.paystreamadvisors.com
  2. 2. AutomationSolutions for Table of ContentsSAPTable of Contents Executive Summary.......................................................................... 1 The ERP Environment...................................................................... 2 AP Challenges and Automation Goals........................................... 5 The Case for AP Invoice Automation...............................................6 Components of the Invoice Automation Universe......................... 7 Benefits of Invoice Automation........................................................9 Best Practices for Touch-less AP.................................................. 11 Key Performance Indicators.......................................................... 13 Solution Profiles............................................................................. 14 Basware.................................................................................................................. 14 Basware Case Study...................................................................................17 Direct Insite............................................................................................................. 18 Direct Insite Case Study..............................................................................21 Dolphin....................................................................................................................23 Dolphin Case Study.....................................................................................27 ReadSoft.................................................................................................................28 ReadSoft Case Study..................................................................................32 SAP.........................................................................................................................33 SAP Case Study.........................................................................................36 Selecting a Solution....................................................................... 37 About PayStream Advisors, Inc.................................................... 41 © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com i
  3. 3. AutomationSolutions for Executive SummarySAP A significant shift is starting to shake traditional AP operations, especially for SAP clients. While invoice imaging and workflow are now mature technologies, theirExecutive Summary adoption lags. PayStream’s research indicates solutions streamlining the receipt- to-pay cycle have only been adopted by 45 percent of Global 2000-sized North American companies. Consequently, a large portion of the SAP user community still relies on paper-based invoice processes. Until recently, the biggest stumbling block to removing paper from the finance department was getting the project started. Today, however, finance managers struggle with a new problem: where to get started? Due to the explosion of options - from invoice imaging, automated data capture, approval workflow, eProcurement, electronic invoice portals, supplier collaboration, PO compliance, discounting and payment – automation decisions are complex. To make matters worse, new technology companies and solutions continue to enter into the ePayables automation arena. PayStream’s research suggests that the explosion of options together with a lack of clarity about solution choices is slowing the adoption rate. The goal of every finance department is to provide information for managers to make investments and budget decisions. With limited or no visibility into accruals, companies often have delayed closes subject to inaccuracies caused by the understatement of expenses and overstatement of income. This report is aimed at finance and IT directors at organizations using SAP who seek to understand the significant competitive advantage of improving their payables department. Individuals who require product information to identify appropriate solutions for their receipt-to-pay automation needs within an SAP environment will find in this report appropriate solutions that can automate all payables functions. Automation Solutions for SAP: Solutions for Touch-less Accounts Payable is a PayStream Advisors Technology Insight Series report focused on SAP-specific e-Payables solutions, including invoice automation and payments, which leverage SAP capabilities and have seamless integration with SAP. It will highlight the advantages of solutions that work within SAP as well as those solutions that sit outside SAP and discuss the relative merits of both approaches. PayStream Research Library This report is one of many resources available in our research library, including: • Invoice Automation: Automating AP Processes through Imaging and Workflow • Electronic Invoice Management: Getting Rid of Paper from the Source • Electronic Invoicing: Best Practices and Operational Metrics to Streamline AP • Invoice Automation for Small & Medium Enterprises (SME) © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 1
  4. 4. AutomationSolutions for The ERP EnvironmentSAP To understand the current state of invoice automation, it is useful to take a step backThe ERPEnvironment and briefly look at the evolution of business software. Today’s enterprise resource planning (ERP) solutions grew out of manufacturing resource planning (MRP) software, which was essentially designed to match demand to the supply chain. MRP systems include inventory control, bill of material processing and production scheduling in order to help organizations plan manufacturing, purchasing and delivery. Accounting was handled in a different system. ERP systems where subsequently designed to wrap everything into one package. By integrating MRP and GL/Accounting with other core functions like maintenance and HR into a single software suite, organizations realized a much broader scope of process control. The two glaring problems with ERP systems is that workflow often requires a high level of customization that can be costly and take a long time to roll out. ERPs were not designed to handle unstructured content such as documents. As a consequence, additional software solutions were developed to plug these gaps, specifically electronic document management (EDM) and business process management (BPM). From these technologies evolved enterprise content management (ECM), which combines document management and workflow. Using these technologies, point solutions were created to address narrow, but significant process weaknesses such as invoice management as required by the AP function. Another issue that comes into play with ERP systems is their lifecycle, which can be fifteen years or longer. Because of the scope and impact an ERP installation has on an organization, they are somewhat like an aircraft carrier in that they are costly to replace and take time to steer in a new direction. They also require a lot of support. Carriers require a task force consisting of a variety of surface ships and submarines each with a specialized mission so that the carrier operations are not hindered in any way. Likewise, an ERP/Integrator Complex has evolved that seeks to perpetuate the ERP universe. In essence, the major ERP solutions have spawned a symbiotic support network that helps extend the usefulness and lifecycle of a corporation’s ERP. ERP vs. Bolt-on While ERP systems can provide a scalable platform for activities like outsourcing or shared services, they are not as nimble as bolt-ons that provide point solutions addressing emerging business requirements. Organizations that have implemented ERP systems are therefore faced with a dilemma whenever they need to automate a new process. On the one hand they can adhere to the single source approach and work with their ERP vendor and/or an ERP integration partner to build out the new functionality. More often than not this is costly and time consuming. On the other hand, they can turn to external software vendors offering bolt-on point solutions compatible with their ERP system. These can be comparatively less expensive and faster to implement while offering best-in-breed functionality that addresses client needs. By nature, bolt-on solutions pose a threat to the ERP/Integrator Complex in terms of lost revenue opportunities. Having created a customer for their ERP product, ERP vendors and the major consulting firms that provide integration and implementation services for ERP products naturally have a vested interest in doing everything possible © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 2
  5. 5. to continue selling the ERP client additional ERP functionality. The bolt-on alternativeAutomationSolutions for provides not just a single instance of departure, but the start of a new pattern ofSAP behavior that makes it more likely other bolt-on solutions addressing other business ecosystem needs are chosen instead of the solutions delivered by the ERP/IntegratorThe ERP Complex.Environment To address this issue, the ERP/Integrator Complex has taken an “if you can’t beat them, then join them” approach. By partnering with or acquiring ecosystem providers offering bolt-on point solutions, the complex is able to more quickly deploy tightly integrated, cost-efficient software automation tools. Relying on open platforms, they first attack the low hanging fruit to generate return on investment (ROI) and then go after the more complex and harder to address process issues. For existing ERP clients, the expanded scope of the AP ecosystem offerings from the ERP vendors makes it harder to differentiate between solution types and where best to invest in additional automation. For organizations shopping for an ERP system, a thorough understanding of the extended automation ecosystem, both internal products and those from external vendors offering bolt-on solutions, will help define the purchase decision. Integration will always be a key component in a purchasing decision and will be greatly affected by an organization’s IT environment. To gain complete and clear visibility throughout the entire AP flow, organizations must minimize the paper and tightly integrate AP processes with their ERP. The SAP Universe Like other ERP solutions, SAP has a transactional heritage. SAP consequently collects a lot of data related to the primary business processes it tracks. In respect to the purchase-to-pay process, data is collected with each purchase order created, which is then supplemented with additional data inputs related to receipt of goods, receipt of invoice and payment processing. When external data sources, unstructured data and processing exceptions to the transactional norm are involved, capturing and processing that data within the confines of the core system can pose a significant challenge. This is where other solutions that work within the broadly defined SAP ecosystem may come into play. Within the SAP universe, there are significant differences between an SAP solution extension and other products offered by external solution providers. There are only a handful of SAP solution extensions compared to hundreds of SAP Partner Certified Solutions. Though products from certified partners go through extensive testing, they do not undergo the same testing regimen by SAP as SAP solution extensions. If support is offered through the SAP support portal, the support is routed to the certified partner. Also, it is more likely a certified partner will have to bring in other partners to provide ancillary functionality such as OCR or archiving. None of this is to say that bolt-on solutions are inferior or second-tier in any way, just that they have not been adopted under the SAP brand. They are certainly rigorously tested and supported by their developers. Furthermore, the bolt-on solutions have proven themselves in the market. Thousands of users are benefiting greatly from the advanced functionality and flexibility offered by these best-in-breed partners as well as their compelling ROI. SAP solution extensions, the highest partner category, augment SAP’s core ERP/ financial solution. To become a Premium Qualified partner product they must pass SAP’s own testing standards. SAP solution extensions are in essence an SAP product, except that a partner that is a leading point solution has developed them. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 3
  6. 6. Automation SAP solution extensions are SAP branded and marketed, meaning that they are onSolutions for the SAP price list, carry an SAP warranty, and are supported by SAP, not just theSAP partner. From a user standpoint, the look and feel of an SAP solution extension is that of SAP.SAP Universe In fact, the user never really leaves SAP. Other tightly integrated solutions from certified partners may also retain the look and feel of SAP and be written in SAP’s ABAP programming language so that the user cannot tell whether they are working within SAP or the bolt-on solution. For the user that is accustomed to working in an SAP environment this can be a critical factor. In contrast, users who are new to SAP or have multiple ERPs may be more inclined to look at an external best-in-breed bolt-on solution with its own look and feel. Established users of SAP may also consider an external solution based on their processing, functionality, usability and cost requirements. These solutions will exchange data seamlessly with SAP, but the user works in a best-of-breed point solution that delivers its own unified AP processing experience. It is not uncommon for a company to have different instances of SAP or even have SAP in one location and another ERP at a different location, often due to mergers and acquisitions. Companies on multiple ERP platforms looking for global visibility will need to look for a best-of-breed solution that works outside of SAP. While some of these best-of-breed solutions may retain some of the look and feel of SAP while providing global visibility across disparate ERPs, other external solutions provide their own unique user interface. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 4
  7. 7. AutomationSolutions for AP Challenges and Automation GoalsSAP The biggest invoice management challenges are related to an overreliance on peopleAP Challenges and and paper-based processes, and the high number of discrepancies and exceptionsAutomation Goals associated with such a system. While increasing electronic imaging remains a top goal, followed by automated workflow, implementation of invoice imaging and ERP application upgrades both show significant momentum. Although invoice automation remains predominantly accuracy and efficiency driven, momentum is building for broader application as a management information tool. Emerging concerns related to this are discount capture and spend visibility. Streamlining the AP process is vital in a tough economy where adequate cash flow and greater control over payables are critical to maintaining liquidity and sustaining business operations. The convergence of electronic invoicing and front-end invoice imaging presents organizations with a single comprehensive solution that can manage both paper and electronic invoices through a common automated process. Once a formidable obstacle, the challenge of integrating new applications with ERP systems is becoming less daunting. Most invoice automation solutions on the market today integrate easily with systems on both the buyer and supplier sides, resulting in secure and seamless data transfer, as well as streamlined processes and more efficient workflows. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 5
  8. 8. Automation The Case for Invoice AutomationSolutions for We believe AP automation is emerging as one of the key components of financialSAP supply chain strategy. This is in large part due to the operational efficiencies derived from automation that in turn drive cost savings. At an operational level, automatingCase for InvoiceAutomation existing accounts payable processes can: • Reduce processing costs for both paper and electronic invoices • Increase full-time equivalent (FTE) efficiency • Reduce processing errors and promote faster discrepancy resolution • Minimize the payments risk of fraudulent and duplicate invoices • Increase straight-through processing and achieve lowest cost routing to minimize bank charges On a more strategic level, AP automation can unlock significant value from the financial supply chain. This involves an understanding of the receipt-to-pay process in the context of trading partner relationships. Added value is created by: • Accelerating the approval of invoices to capture early payment discounts • Facilitating dynamic payment terms based on a sliding scale • Optimizing spend management for working capital gains • Enabling suppliers to improve their own cash flow through improved visibility into invoice status • Strengthening vendor relationships This type of collaborative approach to financial supply chain management facilitated by AP automation also positions buyers to partner with innovative banks providing supply chain finance support. For suppliers, an integrated bank relationship can reduce their Days Sales Outstanding (DSO) without the need for high-cost financing options such as factoring and asset-based lending. At the same time, the financial institution can help buyers retain and potentially extend their Days Payables Outstanding (DPO). © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 6
  9. 9. Automation Components of the Invoice Automation UniverseSolutions forSAP The invoice automation universe is comprised of a number of different functional components. Some vendors deliver functionality in an integrated, end-to-endInvoice Automation solution, while others focus on specific components. The AP automation solutionsUniverse designed for an SAP environment discussed in this report all fall into the former grouping. There are six primary components of the AP automation environment. A brief description of each follows: Paper Invoice Receipt Paper invoices, whether they are received in a centralized location or a distributed environment must be prepared for scanning and electronic access. This involves the hands-on sorting and batching of all relevant documents. Document and Data Capture The conversion of paper invoices and other transaction-related documents into digital images and index data requires scanning, image enhancement, indexing, validation and data extraction, most of which are handled automatically by the solution being used. Electronic Invoicing Most invoice automation solutions come bundled with a vendor portal or can be integrated with electronic data interchange (EDI) or with electronic invoicing network that suppliers may use to submit invoices electronically by entering the data manually, flipping purchase orders into invoices, or uploading documents from their accounting systems. Electronic invoices are automatically validated in accordance with buyer-defined tolerance levels and suppliers are immediately notified of the exceptions they need to correct before the invoice is forwarded for AP processing. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 7
  10. 10. Automation Content ManagementSolutions for The delivery, storage, management and disposition of electronic documents andSAP index data is central to invoice automation and must integrate closely with the client’s ERP system in terms of access rights and the ability to provide seamlessInvoice Automation retrieval. Some solutions come bundled with a central repository, while others relyUniverse on third party providers, and still others simply integrate with the SAP ArchiveLink data repository. Matching and Workflow The system must handle both the matching of PO-based invoices and related exception resolution as well as non-PO-based invoice approval. The workflow engine, according to pre-defined business rules that administrators should be able to configure without IT support, routes tasks and invoices pending approval to the appropriate party based on pre-defined roles. Tasks not addressed within system parameters are then subject to automated escalation routines. Reporting and Analysis Being able to analyze invoice receipt-to-pay metrics and monitor user activities for quality control and load balancing is critical to automation efficiency. Typical reporting and analysis tools include standard and ad hoc reports detailing invoices pending approval, past due invoices and cycle times. The best solutions provide the ability to modify standard reports and to perform simple and advanced searches to generate output that provides visibility to both buyer and supplier transactions, and provides access rights to suppliers. Besides the ability to create custom reports on an ad hoc basis, the more advanced solutions also allow users to save those queries as templates for further reuse and provide the ability to integrate with external reporting tools. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 8
  11. 11. Automation Tangible Benefits of Invoice AutomationSolutions for Clearly the benefits of invoice automation are tangible and achievable. DependingSAP on the type of solution implemented, organizations can achieve a wide range of benefits related to accuracy, processing times, discount capture, and labor costs.Benefits ofAutomation The biggest benefit of automating the invoice receipt process for a majority of organizations is fewer lost or missing invoices. Invoice automation facilitates immediate visibility and makes invoices actionable to all relevant parties, irrespective of where they are located geographically. Another significant benefit of invoice automation is quicker approval cycles. Our research shows that automating invoice receipt combined with automated matching and approval workflow can shrink approval cycle times from 23 days or more to as little as five days. Approval of non-PO invoices can even be less. These performance gains are driven by meta data extraction with OCR / IDR, immediate invoice image visibility, automated matching, the elimination of manual data entry, and ensuring that invoices are reviewed and approved in a timely manner. The ability to accelerate approval times has allowed organizations to increase their on-time payments as well as capture more payment discounts. Elimination of manual data entry and paper-based routing of invoices along with the reduction in discrepancies and exceptions brings another benefit to the equation, the ability to reduce staff and processing costs. The ability to redeploy staff from low value- adding activities to more strategic tasks like vendor relations, spend management and incremental discount capture is an added bonus. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 9
  12. 12. Automation Purchase-to-Pay and the Role of Invoice AutomationSolutions forSAP Invoice automation plays a key role within the optimization of the Purchase-to- Pay (P2P) process; in particular the advantages provided by an electronic invoice environment and automated workflow matching. The goal is to create end-to-endP2P Automation automated processes, also referred to as straight through processing (STP). The promise of STP is that by eliminating human intervention, or touches, efficiency will skyrocket and costs will drop precipitously. The key is to eliminate as much paper as possible. Converting paper invoices to electronic documents is primary, but also increasing the use of p-cards, driving suppliers to an invoice portal and automating contract management can reduce your reliance on manual processing. With the volume of paper processing reduced, it is then possible to build out the automation within your P2P process. Transitioning to a touch-less AP environment, however, is not something that is done all at once. Enterprises desiring to become touch-less need to take a staged approach that involves: • Getting rid of paper • Matching a clean document sent (usually the purchase order) with a clean document received (typically an invoice or delivery receipt) • Then implementing e-procurement tools AP processing provides the initial, easy to realize benefits of P2P automation. Beginning with purchasing, the front-end of the P2P process, does not deliver the requisite benefits to sustain continuous improvement. Attacking the paper invoice problem does. Being successful with invoice automation provides the impetus for then extending your touch-less process outwards in order to span both ends of the P2P continuum. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 10
  13. 13. Automation Best Practices for Touch-less APSolutions forSAP Eliminating human touch points is a best practice in its own right. Once an invoice is captured electronically, the question to ask is: Does this invoice need to be approved? The ability to derive an automated answer by using business rules, which in turnBest Practices trigger appropriate workflows, is the centerpiece of a touch-less AP environment. If the answer to the question is no, the system will move the invoice into the payment process. If the answer is yes, the system will route it to the approving party along with any necessary decision support documents and information. Business rules, flexible workflow and transactional transparency are essential. For global organizations, there is an added layer of complexity related to localization. This is because there are different legal requirements for invoice processing from country to country. The question you must first ask is: Are we capturing the correct data in every country? Once you understand your requirements, you will be able to determine if a standardized solution is sufficient for processing in each country in which you do business, or if service extensions are required from your solution provider to capture all the information you need. On a basic level, we have identified 15 areas that impact touch-less AP processing. They are offered here to provide you with a checklist for evaluating both your needs as well as the functional capabilities of any solutions you consider. They are: • Invoice Submission – The system should facilitate the exchange of invoices between buyers and suppliers by supporting several methods of supplier submitted invoicing including PO flips, blank e-forms, standard templates and direct integration (Electronic Data Interchange – EDI) with a supplier’s ERP system. • Document Scanning – Having all invoices sent to a single location for scanning is preferable, but not always practical. In decentralized organizations the best practice is to receive paper invoices in regional scanning centers and then scan to one central repository. • Compliant and Secure Storage – The ability to capture and then maintain both structured and unstructured data must be accomplished within a secure environment that is not only compliant with all relevant regulatory and industry standards, but also extends to the integrated process. • Invoice Recognition – It is very important to be able to capture line items and not just header data. Without line item details automated systems must forego the use of advanced matching and business rules to decipher apparent exceptions. The use of free form ICR or IDR can provide an added level of automation compared to a template driven OCR process. • Invoice Validation – The system must check every invoice for duplicity and mathematical integrity. In a portal environment, checking invoices against a set of buyer-defined criteria and notifying suppliers to correct any errors before the invoice is accepted and routed provides an additional layer of validation. • Invoice Matching – This involves matching invoices with purchases, goods receipt documents and/or contracts based on criteria configured in the system. The system should also route any match exceptions for review and resolution. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 11
  14. 14. Automation • Workflow Configuration – Administrators need the ability to configure andSolutions for change the business rules that determine how invoices will be routed toSAP appropriate users for review and approval. • Alerts and Notifications – The system should notify approvers of invoicesBest Practices pending their review and escalating invoices to managers if no action is taken within a specified period of time. • Payment Processing – The steps that buyers take to initiate, post and execute payment, including preparation, processing, and submission of the payment file to the financial institution need to be seamless. • ERP Integration – Besides the exchange of transactional data between the invoice automation solution and the ERP, this stage also includes integration with and posting of the payments to buyers’ GL and accounting systems. • Remittance Management – Sending the remittance information to suppliers via the portal in a format of the suppliers’ choice is critical so that they can easily transfer the remittance advices into their receivables systems. • Travel Receipts – Paper receipt capture, either scanned or via a mail service, and matching those items to submitted expense reports or credit card downloads (in addition to providing confirmation to the employee), must be integrated with workflow providing approval, exception/discrepancy handling and delivery to AP. • Contract Management – Leading edge firms are implementing automated contract management capabilities (typically for handling non-PO invoices related to leases, utilities and other recurring bills) to further reduce manual processing. • Mobile Apps – Delivering tasks and supporting documents to a mobile device facilitates approval by executives who travel regularly. Mobile apps are in the early stage of development and deployment but are expected to increase significantly in popularity. • Business Intelligence – There is a wealth of information gleaned from the P2P process, which can be used not only to comply with regulatory requirements but also to provide valuable business intelligence for strategic spend analysis. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 12
  15. 15. AutomationSolutions for Key Performance IndicatorsSAP The accounts payable process has a number of moving parts and unless keyKey Performance metrics are identified and performance measured against these indicators, it is quiteIndicators likely that something will fall through the cracks. To ensure smooth functioning, key performance indicators (KPIs) should be measured periodically. KPIs become all the more critical when a company is going through a new technology implementation, so that measuring and comparing KPIs before and after an initiative provides a good indication of the impact it had on the AP process. Here are some key KPIs you should track periodically as well as before and after any invoice automation initiative aimed at increasing your touch-less AP quotient: Average Cost to Process an Invoice (by Invoice Type) Calculating processing costs can provide valuable insights into the factors driving the costs and ideas on reducing total costs. Include salaries and benefits, facilities and hardware, software and IT support and managerial overhead in cost calculations. Also calculate processing cost by different types of invoices (e.g., clean vs. exception) and by steps involved in each process (e.g. data entry vs. exception resolution) to address the expensive invoice types and processes. Exception Invoices as a Percentage of Total Invoices It is a well known fact that exception invoices cost much more to process than clean invoices and drive up the overall processing costs for AP. Track the number and dollar value of invoices that end up in an exception queue and log details such as expense type, vendor information and type of exception. Understanding the source of exceptions and addressing them is critical to reduce the occurrence of exceptions. Average Time to Approve an Invoice from Receipt to Payment Knowing how long it takes an invoice from the time it gets to the AP department to the time it is ready to pay can help AP managers identify bottlenecks – data entry, approval or exception handling – and take the appropriate steps to compress the invoice receipt-to-pay cycle. Accelerating the processing cycle can help reduce late payment penalties and increase capture of discounts offered by suppliers. Electronic Invoices as a Percentage of Total Invoices Electronic invoices take less time and are less expensive to process than paper invoices. Track the percentage of electronic invoices as well as the percentage of suppliers sending them. Increasing the percentage of invoices that come into the AP department in electronic format has a beneficial impact on the other two metrics you are tracking – average processing times and costs. Suppliers Participating in eInvoicing as Percentage of Total Suppliers The best electronic invoicing solution will not deliver a payback unless a critical mass of suppliers has been onboarded. Develop a supplier recruitment and enablement plan in conjunction with solution implementation and then periodically track the percentage of targeted suppliers that have been migrated from paper to electronic invoicing. If the percentages are too low, then it is time to change your activation campaigns and supplier communication methods. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 13
  16. 16. AutomationSolutions for Basware OverviewSAP Basware is the global leader in purchase-to-pay solutions with more than 1 million users in over 60 countries. With Basware’s Invoice Automation, organizations canSolution Profile reduce the cost of buying and paying for goods and services and gain visibility and control of its entire spending process by automating manual processes from sourcing, contract management, purchasing and supplier collaboration to invoice automation. Basware solutions and services enable firms to optimize working capital and maximize the agility of finance operations throughout the purchase-to-pay cycle. Solutions are distributed and implemented, either on site or as a service, in Europe, the U.S. and Asia-Pacific through an extensive network of Basware offices and business partners. The company’s U.S. business, Basware, Inc., is headquartered in Stamford, Connecticut. Website www.basware.com Founded 1985 Table 1 Headquarters North American HQ is located in Stamford, CT BASWARE Other Locations World HQ in Espoo, Finland, 10 offices in Europe and AsiaPac SOLUTION PROFILE Number of Employees 1100+ Number of Customers 1600 Number of End Users 1,000,000+ IKEA, Whole Foods Market, Sonic Drive Ins, Panasonic, Heineken, NASDAQ OMX, Caterpillar, Alcon, ABB, Cargotec, Key Clients ING, Global Industries, Apache, Children’s Hospital, Adventist Healthcare Target Verticals All Partners/Resellers SAP, Microsoft, EMC, Oracle, Ricoh, Cannon Transactions Millions Processed Best EIPP Service Provider by Global Finance Magazine 2010- Awards/Recognitions 2012; Pros to Know 2009-2012; Top 100 Companies by Supply and Demand Chain Executive 2009-2012 Solution Name Basware Invoice Automation Frequency of Upgrades Once per year for major releases, minor releases 2-3 per year Solution Functionality Basware solutions are delivered both as SaaS and licensed offerings. While Basware works outside of SAP, it employs certified SAP interfaces to seamlessly integrate with SAP and other SAP solution providers. Similarly, Basware has integrated with over 250 other ERPs and financial systems in order to provide a single AP platform for users in an organization regardless of whether they have a single SAP instance, multiple SAP instances or a combination of SAP and other ERPs spread throughout the various departments, business units, affiliated companies, etc. The result is a single view of all AP activity company-wide. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 14
  17. 17. In 2012, Basware launched Alusta, a cloud-based platform for business-to-businessAutomationSolutions for transaction collaboration. Alusta is Basware’s platform that underpins and powersSAP the B2B Cloud, an open, secure and global commerce ecosystem for buyers and sellers that streamlines, optimizes and accelerates transaction collaboration, improving purchasing and invoicing processes, and delivering enhanced supplier relationshipsSolution Profile and financial performance. The Alusta platform introduces many new features including an improved GUI with single role based user interfaces across all P2P and O2C processes, an updated mobile client for mobile phones and tablets including Apple iPhone, iPad, Android and others, real time social collaboration, multi-tenant SaaS packages, neutral network connectivity, and enhanced reporting. Basware also has one of the largest e-Invoicing networks in the world. Basware’s Open e-Invoicing Network is a B2B transactional platform that’s been connecting millions of businesses worldwide for over a decade. It seamlessly connects with over 130 international e-invoicing platforms, making it the largest inter-operator network in the world. In 2011 alone, the Open Network hosted more than 21 million transactions from more than 550,000 active buyers and sellers. Pricing and Implementation SaaS implementations are quick and can be up and running in a matter of weeks. Implementing a licensed product typically takes about three months. The Basware fee structure is transactional and user-based, though a licensed fee structure is also available. These fees include a full level of customer support during and after implementation. Invoice Receipt Functionality The Invoice Automation solution allows for the receipt of both electronic and paper invoices. It also provides options for distributed capture, and outsourced scan and capture services, allowing customers to shift completely to e-invoicing from day one. Services include importation of invoices from any format (HTML, EDI feed, paper, PDF, email, etc.), sorting and batching, scanning with the latest OCR technology, data extraction, validation and delivery of invoices back to the customer’s AP solution. Data can also be entered via a Supplier Portal where suppliers can convert their own POs to an invoice, evaluate receipt settlement, and utilize contract based self-billing. The primary efficiency driver of Basware’s platform is invoice pre-matching. The company aims to prepare invoices for SAP (examining tolerances, exception processing, 2-or 3-way matching, etc.) so when they hit the client’s SAP system, all invoices go through 100 percent smoothly. Basware also offers contract matching, which SAP cannot handle, that can be applied to utilities and other contract- or tariff- based vendors. Document and Data Capture Functionality Basware offers multiple scanning options. One is onsite scanning through customer- driven scanning operations. For onsite scanning, Basware uses an OCR double- engine, template based and free-form capture method for the most reliable and accurate data capture. All images are automatically indexed for fast retrieval and reporting purposes. Another option is a totally outsourced scanning service, provided by Basware, which enables a customer to receive 100 percent of all invoices electronically with complete data capture and validation. Basware Scan and Capture Services cover all steps of the invoice receipt process. The service is scalable and flexible should invoice volumes © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 15
  18. 18. increase or decrease at any point in the future. CloudScan is yet another way invoicesAutomationSolutions for can be captured. CloudScan allows customers to download a self-scanning capabilitySAP in minutes enabling them to do local scanning before sending invoice data to the cloud for data capture and validation.Solution Profile Vendor Portal Functionality Basware’s solution supports a vendor portal where suppliers can submit invoices electronically. It will also validate all invoices based on any number of criteria, system, or client requirements according to business rules. Notifications can be completely automated and are usually sent by the client’s email system. All data – both paper and electronic invoices that a vendor may submit – is standardized for the approval process. The Basware Supplier Portal also enables vendors to create an invoice from a purchase order, commonly referred to as a PO flip. Content Storage and Management Invoice Automation includes storage and archival functionality for captured images and data. Comprehensive content management capabilities are also provided, including archiving, search, and retrieval facilities. Invoice images are stored on a file server with the archived information available for reporting purposes. Basware allows for complete visibility to all invoices. With proper authorizations, users have the ability to search on any information saved with the invoice or by any action performed against it. An unlimited combination of search fields can be configured according to client requirements. Users can even export large invoices to excel, manipulate the data, and then re-import the invoice back into Basware in its new configuration. Workflow Management Basware’s robust workflow environment supports automatic, semi-automatic, or manual processes per a client’s needs. Administrators have complete control over individual user access rights – they can control what users may see, approve, how much they can approve, along with any action that may be required of the user. During the initial implementation phase, Basware embeds the client’s business rules within the system. Simple interfaces are then provided for the input and review of workflow items. An email message with a direct web link can be provided to alert users that an invoice needs attention. Automatic escalation, reminders, archives and back-up chain features are all standard and available for use from day one. Any user may open an online conversation regarding a specific invoice with any other user, and those chats are stored with the record, making them part of that one invoice’s history. Basware also provides unique mobile solutions – users can approve invoices and check statuses on any mobile platform (Apple’s iPhone or iPad, Android and other networks) via a Basware app. Reporting and Analysis Excellent functionality and ease of use come together in Basware’s reporting and analysis tool – IP Monitor. Invoices can be monitored at every step in the process. The Basware IP system was designed to create an unlimited number of reports via point- and-click functionality. Reports can be created on spend analysis, cash management, suppliers and audit trails, and include information about an invoice’s history through the workflow. Suppliers are able to review, confirm and comment on their own invoices as well. A complete and comprehensive audit trail in Basware’s Invoice Automation suite is provided and can be leveraged for SOX compliance. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 16
  19. 19. AutomationSolutions for Basware Case StudySAP Invoice Automation Adds Value to Accounts Payable OperationsCase Study Worldwide at Global Leader in Power and Automation Technologies Challenge: As the global leader in power and automation technologies for utilities and industry, this Fortune 500 company receives and processes millions of invoices each year in countries all around the world. Trying to keep track of all these invoices and manage accounts payable (AP) processes was a very labor intensive and time-consuming task. With a vision to standardize processes, improve efficiencies as well as interface to their SAP systems, the company embarked on its journey to automate AP operations. Determined to achieve more effective invoice processing they conducted a thorough evaluation of automated invoice processing solutions, and with input from several of their locations worldwide, selected Basware’s invoice automation solution. For example, prior to implementing Basware, one of their country units manually processed 380,000 invoices each year. Typically, invoices were manually entered into the purchase invoice ledger, and routed internally to the appropriate recipient. They were then checked and approved, forwarded to the Accounts Payable department through internal mail, processed, verified, and manually booked and archived. Solution: To make these processes simpler, faster and more efficient, the company decided to centralize the accounting processes of all 14 business units in this one country into a single Shared Accounting Service Center and implement Basware’s invoice automation solution. Today, the Basware solution is used to scan in purchase invoices, validate the scanned data, and incorporate the invoices into Basware’s invoice automation system in one single step — cutting the initial processing time in half. After the invoices are scanned into the system, they are automatically sent for review and approval and then transferred to the ERP system for payment. The Basware solution enables them to adopt end-to-end electronic processes, as well as ensures efficiency and reliability. The flexibility of Basware’s Invoice Automation system and its ability to adapt to local variations of this company’s AP processes enabled them to implement the solution in 18 countries to date – with more coming on board over the next couple of years. Results: This company has gained significant benefits and productivity gains. With Basware’s invoice automation solution, they are now able to match invoices with purchase orders (POs), and some countries are already achieving 60% fully automatic, straight-through processing. They have gained significant productivity increases in processing invoices, and have been able to accommodate higher invoice volumes each year since the solution was implemented. The company also uses Basware’s invoice automation solution to support business decisions, such as supplier relationships. And they can now easily analyze their supplier base, among other key areas, to determine which suppliers they should focus on converting to e-invoicing. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 17
  20. 20. AutomationSolutions for Direct Insite OverviewSAP Direct Insite Corporation is a global provider of financial supply chain automation for procure-to-pay business processes. The company’s solutions and services aim atSolution Profile delivering on-demand payment capabilities that are deployed fast, with minimal cost and operational impact, and provide guaranteed benefits across the financial supply chain. Direct Insite’s service offering for automating both accounts payable and accounts receivable operations, Invoices On-Line (IOL), was introduced in 2000. Website www.directinsite.com Founded 1987Table 2 Headquarters Sunrise, FLDIRECT INSITE Other Locations Bohemia, NY; Santa Clara, CA; Denver, COSOLUTIONPROFILE Number of Employees 60 Revenues $12 Million Customers 50+ operating company or enterprise clients Annual Transaction 35+ million Volume Manufacturing, Communications, High Tech, Oil & Gas, Industry Segments Energy, Medical, Media & Advertising, Finance, Shipping & Transportation IBM, Hewlett Packard, General Motors, Siemens, Carlson, Shell, Key Accounts UK Department of Work and Pesions, Areva T&D, INTTRA, Osram Sylvania ISO 9000 Certification, PCI Service Provider Level 1 Certified, Awards/Recognitions SAS 70 Type II Compliant Data Centers, Certified SAP Technology Solution, SAP Business Partner First Data Corp., Hewlett Packard, IBM, SAP, Cognizant, Partners/Resellers INTTRA, Scan One, ScanTek Solution Functionality The Direct Insite IOL platform offers a comprehensive solution to manage purchase orders, invoices, and electronic payments. The IOL solution is primarily offered as a Cloud-based Software-as-a-Service, but is available for installation on client servers as required by some government contracts. This solution sits on top of SAP (or any other ERP), using a collection of web-services to exchange data with SAP in real-time. If everything matches, it provides an end-to-end AP solution. If there are exceptions, AP handles them in Direct Insite and in conjunction with the Direct Insite workflow protocols without ever having to touch SAP. Thus, a seamless AP solution is provided while a user is still able to tell if they are working in SAP or IOL. Invoices On-Line delivers comprehensive functionality on both the buyer and supplier sides. Buyers can issue and manage purchase orders, review and approve invoices, and create schedules and pay invoices online via flexible payment methods. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 18
  21. 21. Automation Suppliers can issue invoices and credit memos and respond to buyer inquiries withSolutions for attachments. Strong audit controls and reporting ensure total visibility of transactionsSAP in real time.Solution Profile Pricing and Implementation Direct Insite uses a transaction-based pricing structure, with a minimal professional services fee up front and a declining fee per transaction as monthly transaction volumes increase. Only buyers are charged to use the solution, Suppliers get free access to the IOL platform. Many competitors charge both buyers and sellers – an impediment to supplier adoption. A typical IOL implementation takes 30 to 90 days, depending on the client’s business rules for workflow implementation and the availability of interface information related to the client’s ERP systems. The on-demand delivery model can be deployed faster and with less up-front cost thereby delivering a measurable long-term return on investment. Invoice Receipt Functionality Supplier convenience is a key selling point, from the ability to electronically “flip” purchase orders into invoices for error-free matching, to line-item edit capabilities allowing suppliers to amend and append orders to both PO and non-PO invoices. IOL offers a full complement of e-invoicing services, from full EDI to scanning of paper invoices. Automated document validation notifies suppliers of invoice errors at the point of submission via email or web portal messages. Document and Data Capture Direct Insite has fully integrated scanning partners to scan invoices and other documents via either non-template reliant OCR. Invoices and other data can also be captured via double blind re-keying. The SLA for data capture is 99 per cent character accuracy. Invoices are mailed, emailed, or faxed to the scanning/capture facility. Business rules can be customized for individual customers to provide the highest level of data validation. All invoices are assigned a vendor number and business unit, and any document that fails validation can be easily modified in the IOL application. Vendor Portal Functionality With more than 100,000 suppliers registered in 100 countries, using over 35 currencies and 17 languages, the IOL Global Supplier Network is a robust marketplace for e-invoicing. Direct Insite’s Supplier On-boarding Team works with buyers to get all of their suppliers enrolled, touting the solution’s fee-free seller services. The web-portal is self-service, aiming to give vendors the ability to find answers to their own inquiries while reducing inbound calls. There is also a line-item editing form that allows suppliers to adjust line items to PO or create non-PO based invoices. Content Storage and Management Storage and archiving functionality for both electronic invoices and paper invoices is offered with IOL. Typically, historical invoice data and images up to 10 years old are accessible in real-time. A user can search for invoices by date, invoice number, amount, vendor name, vendor number, business unit, PO number, payment amount, © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 19
  22. 22. Automation and most any other parameter. The scanned images are typically PDF or tiff filesSolutions for accessed via a web link and are also downloadable.SAP Workflow ManagementSolution Profile IOL delivers integrated workflow functionality that allows invoices to flow through preparation, review, and approval life cycles quickly and efficiently with users assigned authority levels as invoice preparers, reviewers, approvers, and payers. Online collaboration between buyers and sellers allows fast resolution of discrepancies, with either party able to initiate line-item level notes and inquiries. Direct Insite’s solution supports dynamic discounting, allowing buyers and suppliers to work out mutually beneficial early payment terms. Buyers may configure discount rates and submit proposals to suppliers against specific invoices. Suppliers may view the invoices that are available for discounting, compare the discount rate against alternative capital sources, and decide whether to accept the proposal or submit a counteroffer. Reporting and Analysis IOL provides a number of standard and configurable reports, as well as ad hoc query capabilities for custom reports that can be exported in ten different formats. As well as financial management reports, users can analyze early payments, dynamic discount and spend management. On the supplier side, users may check on the status of purchase orders, invoices and payments in real time. These reports can then be exported to a spreadsheet format for further review. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 20
  23. 23. AutomationSolutions for Direct Insite Case StudySAP Siemens Global Shared ServicesCase Study Electronic Invoice & Supplier Self Service Management Challenge: Siemens Global Shared Services provides centralized Accounts Payable processing for 54 distinct operating companies servicing over 100,000 suppliers. Initially, Siemens processed 1.2 million paper invoices in 2007 for 26 business units on over 10 different SAP systems. This volume increased to nearly 2.4 million invoices per year by the end of 2011 with the migration of an additional 28 business units. Concurrently, Siemens was dealing with approximately 50,000 supplier inquiries per month requiring a sizeable call center. Siemens’ challenge was to find an innovative web invoicing and self-service solution to increase the rate of electronic invoicing and decrease supplier inquiries and related call center costs. Solution: Siemens conducted an extensive vendor analysis and selected Direct Insite’s Accounts Payable Supplier Self-Service and eInvoice Automation Portal. Direct Insite provides a globally hosted suite of web-based Accounts Payable Automation and Procure-to-Pay service modules which are incrementally deployed in a phased strategy. A significant plus was Direct Insite’s Supplier Self-Service Portal was already integrated with common ERP platforms such as Oracle and SAP. SAP is the Accounts Payable ERP environment of Siemens. “Direct Insite’s eInvoice and AP Automation service is important for supplier invoice processing and self-service invoice/payment status lookup. With over 2 million invoices per year, we needed a solution provider who would work closely with our suppliers to adopt electronic invoicing and reduce paper invoice handling,” said David Hester, Vice President of Accounting and Finance for Siemens Shared Services, LLC. Benefits: Following a rapid 90 day deployment by Direct Insite, Siemens suppliers aggressively adopted the supplier portal. Within six months from going live Siemens achieved a 40% decrease in supplier inquiry rate. Why? Suppliers gained self-service visibility into their invoice and payment remittance information 7x24x365 days per year. Suppliers are also able to download their invoice/payment data and submit electronic inquiries online. Direct Insite automatically transmits and updates online self-service inquiries to Siemens’ centralized CRM, Remedy™. Following the Phase 1 rollout, Siemens set a Phase 2 goal of achieving 80% paperless invoicing through Direct Insite’s electronic invoicing service. Direct Insite’s supplier on-boarding and enablement services promoted awareness and training to Siemens 60,000 suppliers with the goal of converting manual paper invoices to one of many forms of electronic invoice submission. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 21
  24. 24. Automation Suppliers invoicing Siemens’ 50+ operating companies can submit electronicSolutions for invoices through 1) web form entry, 2) copying a purchase order into an electronicSAP invoice or 3) uploading invoice data from a spreadsheet. Suppliers can also submit electronic invoices directly from their billing system through EDI and XML industryCase Study standard formats. Direct Insite further provides ‘rules-driven’ invoice validation ensuring invoices are 100% compliant with purchase orders prior to posting to the ERP. Best Practice Supplier Adoption Strategies: Siemens and Direct Insite implemented a multi-pronged ‘best practice’ supplier e-invoice adoption strategy which included: • Multiple webinar sessions to Suppliers as well as Siemens Procurement and Accounts Payable staff • Targeted ‘e-invoice’ submission messaging within Purchase Orders • Electronic invoice submission within procurement contracts • Phone, Fax and Email-based awareness campaigns to targeted suppliers Currently, Siemens processes more than 75% of invoices electronically and nearly 65% of all invoices process in a ‘touch-less’ manner -- requiring no AP Department intervention. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 22
  25. 25. AutomationSolutions for Dolphin OverviewSAP Founded in 1995, Dolphin makes crucial business operations run better and smarter for organizations using SAP solutions. Dolphin’s approach produces the rightSolution Profile solution faster for each customer through its unmatched experience in SAP. Dolphin solutions improve business and IT performance, lower total cost of ownership, and deliver a high return on investment. This focus allows customers who use the Dolphin Process Tracking System (PTS) to process over ten million transactions annually in accounts payable, accounts receivable and sales order management. Website www.dolphin-corp.com Founded 1995 Table 3 Headquarters Morgan Hill, CA DOLPHIN SOLUTION Other Locations West Chester, PA PROFILE Number of Employees >50 Number of Customers >350 Number of End Users >50,000 GE, Honeywell, Rockwell Collins, Owens Corning, Johnson Key Clients Controls, Dow Corning, Tesoro, Tim Hortons, Medtronic, Irvine Company, Biotest Pharmaceuticals Medical, Oil & Gas, Food Service, Consumer Products, Target Verticals Industrial, Process Industry, Technology, Automotive SAP, Brainware, Kofax, Esker, Transcepta, OB10, IBM, PBS Partners/Resellers Software, Taulia, Paymetric Transactions Processed >10 Million Top 100 Businesses in the Philadelphia Region; Numerous Awards/Recognitions patents pending, including the Dolphin Content Archive Service for Cloud 2.0 “Zero Footprint” (SAP Certified) Dolphin Process Tracking System for Accounts Payable (PTS- Solution Name AP) certified by SAP Year Introduced 2003 Frequency of Upgrades 12-18 months; quarterly support release Solution Functionality The Dolphin Process Tracking System for Accounts Payable (PTS-AP) certified by SAP is primarily a licensed and installed solution, though some aspects can be hosted based on customer needs. The system resides fully within SAP and leverages SAP’s Business Workflow Engine and ArchiveLink repository. This tight integration means Dolphin’s solution has the look and feel of SAP as well – an important advantage for those already comfortable with the SAP GUI. Leveraging SAP’s security functionality, the system can be configured to limit access based on sensitive data, organizational boundaries or functional responsibilities. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 23
  26. 26. Overall, the Dolphin Process Tracking System for SAP Accounts Payable (PTS-AP)AutomationSolutions for provides users visibility and control within SAP. Additional features are added withSAP every quarterly release, with forthcoming versions to include advanced reporting and analytical capabilities as well as an enhanced mobile experience.Solution Profile Pricing and Implementation Average implementation is six to eight weeks and is defined by the project complexity, non-standard requirements, unique preparation needs and the customer implementation team. Pricing is on an a la carte menu, including licensing by number of AP users, approvers and other elements related to transaction based pricing. Because of Dolphin’s vast SAP experience, they are able to integrate users, vendors and aspects of the AP ecosystem into SAP to deliver significant value for their customers. Customers typically receive a full payback on the investment within the first year of use. Users are provided with a full thirty days of project team dedication after installation, and then they have the option of 24/7 or 12/5 support models. Invoice Receipt Functionality Dolphin’s Process Tracking System for Accounts Payable (PTS-AP) handles every variety of invoice format, from paper to email, fax, PDF, HTML and beyond. Paper invoices can be scanned and archived or OCR can be used to capture the data upon the document’s processing at the capture facility. Manual scanning/imaging capabilities exist as a low-cost option for customers with low invoice volumes, while best of breed partner capture solutions are seamlessly integrated to handle all types of invoices with OCR and/or eInvoicing. The Dolphin Invoice Gateway performs data validations and matches line item data to provide maximum solution design flexibility. Customer specific business rules are configured to determine subsequent exception- handling processes. Document and Data Capture Functionality Paper documents are scanned with a high definition scanner and the images stored as PDF or TIFF files. Email and faxed documents can also be converted into digital images. These images can then be read by the OCR engine to determine the document type as well as to intelligently recognize and interpret the data. The solution is adaptable to permit scanning at either a central location or in a distributed model. Header and line item data is captured to facilitate a complete OCR process. Because the solution is agnostic to capture method, Dolphin’s best of breed approach permits the customer’s requirements to dictate the appropriate capture solution, be it a sophisticated and highly intelligent capture engine for high invoice volume clients, an entirely electronic solution for customers looking to eliminate paper entirely, or a hybrid of both. Since Dolphin’s solution resides within SAP, it interacts immediately with the master and transactional data already in the system. It can auto-fill the indexing screen, saving considerable time and reducing potential keying errors. The solution delivers over 50 different validation tasks and three-way match capabilities to maximize auto-post results with a high degree of accuracy. If auto-posting fails, the transaction is routed via business rules to the appropriate AP team member. All electronic and paper invoices have associated images; even EDI invoices can have a rendered image of the data created to facilitate ease of use for exception handling. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 24
  27. 27. Automation Vendor Portal FunctionalitySolutions for The Dolphin vendor portal, powered by Taulia, is easily configured to meet customerSAP requirements. Invoice details are securely exposed to facilitate supplier self-service, including document images, invoice details and current status, and procurement andSolution Profile remittance information. The portal permits the submission of disputes and queries, master data change requests and electronic invoices, all tied back to workflow within SAP. Vendors may submit invoices by means of a PO flip, and Word or Excel documents can be uploaded and aligned to a standard invoice layout. The same validation tools reside in the vendor portal as well as in the data capture functionality so that non-compliant invoices can be immediately kicked back to the vendor with exception reasoning. The portal also allows for two-way communication between AP teams and vendors. Supplier self-service can eliminate non-value added tasks that account for 15 – 20% of the typical AP clerk’s day. Content Storage and Management Because Dolphin’s Process Tracking System (PTS-AP) is certified by SAP, it integrates seamlessly with SAP’s ArchiveLink compliant repositories. Upon creation of the initial tracking record, the document image is immediately archived. Dolphin’s InfoCenter enables primary and secondary searches of the database regardless where an invoice is within the workflow. The Dolphin InfoCenter offers one-stop shopping for all details pertaining to the invoice process from within SAP. This information is also available via Dolphin’s integrated SAP-certified web-access tool from the SAP NetWeaver platform. Seamless presentation of the invoice in the process is critical to efficient and controlled processing. Workflow Management Transactions are routed automatically via workflow to the appropriate AP team member as well as any approvers required to take action on un-posted documents. AP users can quickly access invoices requiring their attention through the InfoCenter, with the ability to prioritize the ”My Actions” list for timely resolution of the most important invoices. Transactions can be executed via the Dolphin processing screen, or the user can quickly navigate to the relevant SAP transaction with all entered data moving seamlessly to the FB60 or MIRO transaction. For posted and blocked transactions, intelligent routing to Buyers or Goods Receivers who can resolve exception issues can be designed. Ad hoc approvers, designated coders and master data teams are all part of the Dolphin Process Tracking System’s workflow capabilities. Access and administrator rights can be built according to business rules as required by the customer. Existing hierarchies, whether within SAP’s HR module or external legacy systems, can be easily configured for automated table population in PTS-AP. Approval chains are built based on business rules. The solution either uses established business logic to automatically route an invoice through the workflow (and optionally by-pass AP) or AP can select an approver. Approval chains will then be built until the invoice has satisfied all approval and authorization levels. No posting can take place without the requisite approvals. Reminders and escalations are part of the solution, and operate at two levels – regular (days before reminders and escalation) and express (hours before reminders and escalation). © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 25
  28. 28. Automation Reporting and AnalysisSolutions forSAP Dolphin’s PTS-AP provides robust and easy to use reporting and analysis tool sets. Advanced features allow AP users to track the current status of documents as well as measure the performance of the process by analyzing transactions. The DolphinSolution Profile InfoCenter is key, as its dashboard has viewing and manipulation capabilities so users can specify their own report layouts with over 40 data fields available. Reports are pre-determined or can be created ad-hoc. Standard SAP reporting functionality exists for these reports. Suppliers are given rights to access their invoices through the vendor portal and to perform reporting functions as well. Comprehensive audit trails support the ability for full evaluations of authorizations, approvals, amounts and many other audit requests both internally and externally. An optional Audit Self Service tool is available to deliver complete document recovery for audit teams. Insight into accruals is possible with the “Accruals in Minutes” reporting function. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 26
  29. 29. Dolphin Case StudyAutomationSolutions forSAPCase Study IMS Health The leading provider of information services for the healthcare industry follows its roadmap to process excellence and automation in Accounts Payable. Challenge: Covering markets in over 100 countries around the world, IMS Health relies on robust processes and innovative technology to support its Healthcare Measurement, Consulting, and Analytics & Services business divisions. The team is constantly striving to improve the delivery of exceptional service as it tracks more than 80% of global pharmaceutical activity annually for the pharmaceutical and related industries. The team needed an Accounts Payable solution that would better support the strategic imperative of exceptional customer service at IMS. Processing time- sensitive invoices from the global supplier base was an increasingly daunting task. Foreign language transactions posed a challenge for the centralization/outsource initiative. They needed a partner who could deliver a solution that fit into their new SAP Supplier Relationship Management module without missing a beat. The roadmap for automating the capture of invoice data required accuracy, reliability and interpretation intelligence to reduce paper’s grip and offer insight into the process. Solution: Optimizing the business process was critical to the success of the solution. Leveraging the Dolphin Invoice Gateway, IMS utilizes Intelligent Document Capture on digitized images and performs over 50 different data validations and line item matching algorithms prior to posting the transaction ‘hands-free’. The intelligent workflow solution routes transactions for exception handling, coding and approvals based on the organization’s optimized business rules. The Dolphin InfoCenter delivers transparency to invoices throughout their life cycle and addresses the needs of far-flung shared service centers and the centralized corporate management team. Cycle time reporting highlights areas for improvement across the business process. Results: Language issues and remote processing concerns evaporated when the solution was installed. With a recognition rate of over 90%, the Dolphin solution delivers significant Straight-Through-Processing success rates that previously required manual processing. IMS has experienced tangible cost savings, greater control over their cash flow, while mitigating the risk inherent in this important process. © 2012 PayStream Advisors, Inc. • info@paystreamadvisors.com • www.paystreamadvisors.com 27

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