Basware invoice automation


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An introduction to Basware's invoice automation solution for companies processing medium to large volumes of invoices monthly who need to improve financial control and visibility while reducing overall costs.

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  • Text by John Webster….
  • Let’s shift the conversation from the overall P2P process into your goals and your AP automation project. According to Aberdeen Group, companies around the world are sighting a lack of visibility, insufficient control and a need for cost cutting as the top pressures driving AP improvement projects just like Yours. In fact, these issues have barely changed in the last 10-12 years. Some options are newer – such as the opportunities available from dynamic discounting or early pay rebates but by and large, the broad needs of AP today have stayed the same since around 2001 and the wave of legislation following the Enron crash.
  • Our experience has been that these are the big issues. Control & Compliance, Efficiency & Cost Savings and Visibility. Some or all of these will be the reason we are here today. But it’s not enough to simply identify the issues, let’s look at their impact.
  • Having adequate controls and ensuring the organization is compliant is a top priority for any finance organization. When approval policies are not enforced because there is no mechanism to enforce it, that is a major failing. When there are no easily accessible records relating to the spend in an organization, when audit trails are poorly tracked or not maintained at all coupled with lax enforcement of approval policy, there is a risk of fraud at worst or gross negligence at best – either way, it spells trouble when the need is to be compliant with legislation such as SOX, IFRS, EuroSOX, etc. and in order to be compliant you need a transparent and auditable process with demonstrable accountability to the individual.
  • This is where Basware comes in. We help companies around the world just like yours. By providing a system that helps manage user rights and approval limits across the entire organization. Maintaining a full audit trail throughout the invoice lifecycle. Notifying users of duplicate invoices is one way to avoid paying twice – additionally with Basware you can run a Post-Process Audit where you look for invoices that were in excess of the PO, goods were never delivered, goods were paid for twice (different PO number – same goods). And throughout the entire process there is complete transparency and personal accountability.
  • I probably don’t have to tell you the value of this level of control but the result with basware will be that All invoice are approved according to your internal policies (yes we can use existing approval limit matricies) Individuals see full audit trail of the invoice – right back to the PO. All relevant invoice information can be found at a glance Internal auditors or Controllers can easily audit any business unit, cost center, supplier or individual and thereby reduce risks of fraud and provide oversight and insight into actual spend process transparency and individual accountability are benefits of all Basware solutions
  • Enforcing C&C in Basware happens both automatically; eg. When invoices are matched automatically to POs or Contracts. And also in a supportive way such as when an AP clerk wants to send an invoice to an individual for approval and the system alerts the Clerk to the individuals insufficient approval limits.The system will validate master vendor data during invoice receival, we can return invoice to sender if certain data isn’t in place (such as PO number or product codes). The system can pre-book invoices, ensures access rights and approval limits are followed both automatically and in manual workflow selections. Approvals can be automatic within tolerances and additional costs can be captured and booked against specific accounts and cost centers.Whether automatic or manual, the system ensures both purchase policy and invoice approval policy is followed.
  • The system, which is accessed by the Accounts Payable team as well as 5,700 users throughout the UK, now provides automated workflow andreporting and is seamlessly integrated with the Oracle eBusiness Suite.Main challenges focused on the need for maximum control and transparency over the invoicing process involving 130 locations and almost 6,000 users. Their existing process was inefficient and the invoice cycle times were very long.With Basware, their compliance objectives were met with full control and transparency over the invoice handling process (bear in mind this is a public sector organization with extensive compliance related requirements). Within 4 months, internal costs were down and invoice cycle time was down from 45 days to 85% processed within 3 days – massive improvements
  • Visibility & Insight is the second main challenge facing AP organizations around the world. The inability to find and remove bottlenecks is a constant issue. Zero visibility into cashflow and/or currency exposures is more of an issue for some organizations then others. Consolidation of actual spend against multiple purchasing systems is not typically possible but not in a way that would allow you to use the data pro-actively.
  • With Basware, all AP clerks have a direct view to all invoices in the system. You’ll know who’s desk a given invoice is on and be able to send a quick email reminder from the invoice list screen. Invoices in danger of payment are highlighted to AP. As invoices roll through the system, the system gathers data on them relating to how they are processed, why they fail to go straight through the process, etc. This allows the AP clerk or Controller to identify bottlenecks and drill into the issues, which could be a rule, a contract or supplier issue.Cash managers will now see a consolidated picture of all forward obligations split by currency and due date. Knowing spend by supplier or what goods have been received but not invoiced is all part of Basware Invoice Automation.
  • How should you expect your organization to benefit. Invoice cycle times will be faster – this opens the door for any early payment opportunities You will have opportunities to see and remove bottlenecks along the way, ensuring your process evolves over time With improved visibility, Cash Managers have the opportunity to make more efficient use of the capital on hand, possibly offering or taking early payment discounts or rebates. With Basware Invoice Automation, the invoices are all in one place, despite the fact that you might have 2 or 20 different ERPs around the world. 1 system consolidates all the actual spend and provides a single view into your global suppliers (for example).
  • Typically a company has visibility into cash obligations the moment the invoice arrives – realistically, it could be days after the invoice arrives before you know anything about it. With Basware, e-invoices arrive directly into the system and invoices from our Scan and Capture service have a 24 hour turn around before they are in the Basware system.With Basware, visibility extends beyond the invoice however, all the way back to the initial requisitioning or contract creation process. Because all PO data is brought into the Basware database, AP, Treasury, Cash Managers, etc can view forward obligates and take action.
  • Acco Brands is another customer of Basware that agrees P2P is a single process. Their need was to rationalize and automate their processes as part of a plan for future growth. Achieving visibility and control were central to this. With Basware they now have a view of all spend commitment and better control over the accruals process – all of which provides a more accurate picture of finance and where their obligations lie at any given time.
  • Efficiency & Savings is always a goal. The high cost of the process in part due to invoices being handled as paper. This in turn ensures cycle times are long and cash discounts are untapped, late payment fees may even be incurred. Too much time is spent on non-value adding task – both in AP and the rest of the organization.
  • Getting off paper should be at the top of your list if you are serious about efficiency gains. Basware is one of the global leaders in e-Invoicing and supports e-Invoicing with a Scan & Capture Service, Supplier Portal and activation services which come together to provide an onramp for 100% e-Invoices into your Basware system.Basware will take these invoices and match them automatically against orders or contracts where available. Coding, approval and audit trail are copied automatically if the invoice is within tolerance. Exceptions still get coded and routed automatically based on the order or contract and all that is left is the approval. Automatically approved invoices are immediately available for Cash Managers to pay when discounts are possibleAP and field Users also have tools to help speed up the process when it happens to be manual.They can manually associate invoices to ordersEasily post invoices with templates and send invoices into flow with fixed workflowsAnd painlessly alert individuals via email when quick action on an invoice is required.
  • The benefits of course are many. 100% e-Invoicing from day one providing:Faster invoice cycle timesIncreased automation ratesBetter line-to-line matching opportunitiesCash discounts and avoidance of late payment fees due to faster invoice cycle times add to bottom-line savingsCash rebates due to faster payments can deliver top-line growthAutomatic matching of invoices to orders and contracts ensuresZero human errors‘Orderless’ invoices are automatically processedPosting is accurate according to the PO or contractLower invoice processing related costs overallAP Clerks and Users have more time to spend on value adding tasks
  • Matching against e-invoices, Heineken acheives 93% - at line levelAgainst paper invoices (scanned) – 75% Straight-through-processing.95% faster invoice cycle times with 40% less AP staff – all this while connecting to 4 different SAP instances and an in-house built financial system.
  • Step 1 – Mix and match automationOn-site Scan & Capture of paper invoices plus manual matching and manual approval.Step 2 – Basic matching and workflowOnsite scanning with OCR, online matching with approval workflow and automated reporting, SSC handlingStep 3 – Full PO matchingPrice and goods received checksInitial supplier e-invoicing activation In-house Scan & Capture, Step 4 – End-to-end AP automationFull matching across every dimension (POs, contracts, header/ line level data, budgets/pre-agreed plans and orders). Supplier activation to full electronic document adoption. Online dispute management. Auto workflow
  • The first shift from paper to an electronic process is the change to an intelligent process. Invoices arrive as paper or e-Invoices and are pushed through the Basware system, first to AP who typically codes the invoice, then to a Reviewer or first approver, possibly the Requisitioner, who checks the invoice’s validity and finally to the second approver who is likely the cost center owner. Following the final approval, the invoice can be transferred to the ERP for payment.With matching, the electronic workflow becomes an automated process. Invoices do arrive, the system associates it with an order or contract, copies coding and PO history to the invoice, compares values and if the values are within tolerances, the invoice is made available to be paid. When the invoice doesn’t match, coding and history is still copied over and the system automatically routes the invoice to the correct individual for manual approval.
  • Matching invoices to contracts and purchase orders is a best practice. The benefits align with improvements to the process, control and provide additional savings as you would expect from additional automation.Without reading the different bullets, you will agree that by automating the process – within the tight controls made possible through comprehensive business rules – savings and efficiency gains are expected – AND DELIVERED
  • 100% e-Invoicing is attainable with Basware. This unique combination of services ensures your total invoice costs go down over time even if your volumes go up. We will focus on converting your largest suppliers to e-Invoicing, your smallest to the Supplier Portal and those who find it difficult to switch off paper can continue to send paper invoices – Basware will manage the scan & capture of invoices for you, so you only receive the results after we’ve extracted and validated the invoice data. We can and should work to convert these suppliers to send e-Invoices over time – driving costs down and efficiency up.
  • Benefits of sending e-invoicesGet paid fasterKeep customers happyCut admin costs by 40-60%Reduce carbon footprintBenefits of receiving e-invoicesEnable straight-through invoice processingGet rid of manual processesCut admin costs by 90%Benefit from early pay discounts
  • Getting your suppliers to send e-invoices is the end goal and no one debates the shift to e-invoicing that is being supported by governments around the world (EU, Scandinavia, US, Brazil)but, for the moment, you will still have to manage with paper – well actually, you won’t as Basware will manage it for you. We’ll do it better and cheaper as well. Every major market is covered by our Scanning centers. Using the most advanced Scanning solutions we extract header or line item data, validate it and pass it back to you under strict quality levels governed by an SLA.You can see that with Basware, we really can get you off paper in a practical, pragmatic and powerful way.
  • Secure technology: IOS 4 and onwardsInstallations Users can download the application from AppStore and Google MarketPlace directly, reducing the IT department overloadRequires Basware Mobile Proxy installed on Basware Invoice Processing ServerNew touch screen devices supported from Basware IP 5.0.6.onwards
  • To summarize, there are many reasons to chose Basware Invoice Automation. If we have demonstrated the alignment between your challenges and our capabilities, it seems we would have a reason to go forward.
  • Connectivity solutions for buyers and sellers making it easy to get onto the B2B Cloud Transaction connectors Portal Scan & Capture / print servicesLiberated data layer – that allows buyers and sellers to do business regardless of legacy back-end systems or data formats used (incl. paper)Value added transaction services – incorporates additional solutions, services and operations to deliver more value per transaction
  • Multi-tenant cloud-based packages for all buyers and sellers in e-invoicing and purchase-to-pay – delivered on-premise, asan outsourced service or hybrid Process-as-a-service– start with one process (e-invoicing) and pay as you growLiberated data structure – leave your core financial data where it lives, delivering value from legacy ERPConfigurable workflow automationUnified, roles-based user interface across B2B lifecycleB2B document and data exchange in any formatSocial media collaboration layer – instant collaboration to handle exceptions, disputes, errors and build cooperative relationshipsMobile access to the B2B Cloud, anytime, anywhere.Complete data transparency – secure, consistent data accessible from anywhere by any buyer or seller involved in a transactionNeutral connectivity – easy and cost-effective for buyers and sellers to connect and do business from day oneERP agnostic – easy integration to any legacy systemvia Basware AnyERP adaptersAssured security – by transaction, by role, by company
  • Basware invoice automation

    1. 1. A Basware PresentationBasware InvoiceAutomationProviding Control, Visibility and CostSavingsDelivering the financial agility youneed to run your business moreeffectively
    2. 2. A Basware PresentationAgenda Basware in Brief Your Challenges Our Solution Your Benefits Supporting Your Transition
    3. 3. Basware in numbers Corporate performance • Net sales >EUR 107m in 2011 • 1000+ employees • Partners in 30+ countries • >1m users in over 60 countries History • Founded 1985 • Consistently ranked #1/ #2 by analysts across P2P and e-Invoicing • 11 offices around the world The Open Network • 1.9m suppliers listed • >20m e-invoices/POs in 2011 • €175bn total annual spend across network • >50 e-invoice formats • 130+ partners
    4. 4. Your ChallengesOur SolutionYour Benefits
    5. 5. Typical Purchase-to-PayChallenges Procurement Non-compliant spend Too many suppliers Procurement Uncontrolled contracting Supplier No granularity of spendLong sourcing cycles No purchasing leverage • Trading riskPoor visibility to demand planning • Costly audits Inefficient paper based process • Inflexible supply baseLarge inventory • Poor DPO/DSO performancePoor payment visibility • Limited supply chain finance options Finance / AP • High internal process costsHigh working capital costs • Currency exposure High invoice processing costIncreased risk • Compliance risks Manual processing of recurring • Inaccurate cash flow forecasting InvoicesLong DSO cycles Data errors, double payments etc. Late visibility into obligations Slow book closing processes AP discrepancies
    6. 6. Pressures driving AP ImprovementTop AP Pressures according to Aberdeen Group 57% Lack invoice and AP document visibility 43% Corporate directive to lower costs 29% Need for better cash management 23% Difficulty in finding/managing paper-based document archives 15% Need to reduce risk of fraud and abuse (improve control) 13% Inability to capitalize on early payment discounts
    7. 7. Common Accounts PayableIssues Control & Visibility & Efficiency & Compliance Insight Savings
    8. 8. Control & Compliance: Challenges Challenges Capabilities Benefits • Approval policies inconsistent and/or not followed • No records of invoice history, no audit trail, risk of Control & fraud Compliance • Overall process compliance with SOX, IFRS…7
    9. 9. Control & Compliance: Our Solution Challenges Capabilities Benefits • Organization management • User rights and approval limits Control & • Full audit trail Compliance • System alerts • Post process audits8
    10. 10. Control & Compliance: Benefits Challenges Capabilities Benefits • Internal policy execution • Invoice history supports transparency Control & • Avoid double payment or late paying invoices Compliance • Re-claim overpay to suppliers • Easily audits with full drill-down • Satisfy SOXS, IFRS, etc9
    11. 11. Enforcing Control & Compliance  Master vendor validation  Pre-processing data validation  Invoice pre-booking  User rights determine access  Approval limits govern workflows  Auto approvals within tolerances  Additional Costs handling
    12. 12. Control, Compliance andMore at NOMS Challenges • Achieve maximum control and transparency over the invoice process across 130 locations involving almost 6,000 users • Increase efficiency of the invoice handling process • Increase speed of payments to suppliers and achieve early payment discounts Solutions • Basware Invoice Automation • Basware anyERP middleware Results • Compliance objectives met with maximum control and trasparancy over the invoice handling process • Reduced administrative burden – internal costs down • Invoice cycle time down from 45 days to 85% processed within 3 days 4 months after Go-Live
    13. 13. Visibility & Insight: Challenges Challenges Capabilities Benefits • No process visibility • No real-time view on cash flow Visibility & • No consolidated view on spend data Insight12
    14. 14. Visibility & Insight: Our Solution Challenges Capabilities Benefits • AP Master overview • Alerts and highlights Visibility & • Status Monitor Insight • Cash Management • Supplier Spend • Personal Archives13
    15. 15. Visibility & Insight: Benefits Challenges Capabilities Benefits • Shorter cycle time • Processes improve Visibility & • Faster exception handling Insight • Better use of cash • Dynamic discounts • Consolidate spend14
    16. 16. Improved cash flow visibility• Early visibility to committed spend enables cost management across P2P process• Improves cash flow forecasting• Enables active working capital management PURCHASE TO PAY CYCLE PO done Invoice sent 10 days 20 days 30 days 40 days 50 days 60 days Order Goods Invoice Time of confirmation received arrived payment PO process starts PURCHASE TO PAY CYCLE – 65 DAYS
    17. 17. Visibility & Insight at Acco Brands Challenges • Rationalize and automate P2P processes in preparation for future growth • Achieve visibility and control of all spend • Enable a centralized and compliant European purchasing strategy Solutions • Basware Invoice Automation • ERP integration and multi-language support • Basware Purchase Management Results • Real-time view of spend commitments • Boosted compliance and foundations for intelligent strategic purchasing • Cost and efficiency savings ―We now have a view of all spend commitments and a much tighter handle on accruals — all of which gives us a far more accurate finance snapshot of where we are at any given time.‖16
    18. 18. Efficiency & Savings: Challenges Challenges Capabilities Benefits • High costs • Paper invoices Efficiency • Untapped cash discounts & Savings • Non-value adding tasks17
    19. 19. Efficiency & Savings: Our Solution Challenges Capabilities Benefits • 100% e-Invoices • Match to Purchase Orders Efficiency • Match to Contracts & Savings • Coding templates • Fixed workflows • iPhone / iPad / Android18
    20. 20. Efficiency & Savings: Benefits Challenges Capabilities Benefits • 100% e-Invoicing from day 1 • Faster invoice cycle times Efficiency • Discount opportunities & Savings • Fewer errors • Lower AP costs19
    21. 21. Driving Efficiency & Savings 4 Manually selected workflow 3 Automatic workflow 2 Matching against contracts 1 Matching against PO’s Basware anyERP Adapter ERP 20
    22. 22. Enforcing Efficiency & Savings at Heineken SAP Basware database 93% automatically 7% to exception handling SAP matched Invoice processing & SAP anyERP Transfer to payment 75% automatically 25% to exception handling 95% faster Invoice cycle times SAP 40% less AP staff matched Proost21
    23. 23. Supporting YourTransition
    24. 24. 4 steps to full AP automation Invoices / AP FTEStep 4 – End-to-end AP automation ~100 000 invoices/FTE 10% Touchless invoicing 33%Step 3 – Full PO matching ~30 000 invoices/FTE Invoice automation 75%Step 2 – Basic matching and workflow ~15 000 invoices/FTE Paperless workflow 100%Step 1 – Mix and match automation ~5000 invoices/FTE Paper-based handling
    25. 25. Intelligent Processes Scan and Code invoice Automatically Review Approve Transfer capture data with the help match invoice invoice to invoice invoice data using the latest of posting check that and PO, (controlled by to the ERP OCR-technology templates and or invoice invoice is approval limits or financial or receive ‖favorites‖ lists. justified and and contract and rules). system for invoice in payment correct. payment. electronic form. schedule.24
    26. 26. Matching Invoices toPurchase Orders Personal Archive Updated Invoice matches with approved purchase order (PO) Invoice does not Auto-coding/workflow match with PO (discrepancy)25 03/02/2 Author 013
    27. 27. ‗Orderless‘ or RecurringInvoice Matching Personal Archive Updated Invoices match with approved payment schedule or budget (contract) Auto-coding/workflow Invoices do not match with contract (exceptions)26 03/02/2 Author 013
    28. 28. Matching BenefitsProcess Control Savings• Full automation • Enforce • Automate routine (STP) Purchase Policy tasks• Partial • Audit trail – Invoice to PO automation maintained association – Auto-coding • Line level – Coding – Auto-workflow matching – Approvals• Fewer human • 3-way matching – Workflow errors • Goods Receipt • Early payment• More time for based matching discount value adding opportunities tasks
    29. 29. Basware‘s Solution for 100%Purchase Invoices Portal Supplier Invoices Accounts Payable Supplier E-Invoices Buyer Paper & Email Supplier Invoices Supplier Activation Service
    30. 30. Benefits of E-invoicing• Cut invoice processing time by 5-30 days• Enable discounts on 50% of invoices• Reduce spend by 1.3%-5.5% (average)• 10% increase in e-invoicing reduces DSO by 3 days• Cut collection costs by 10%• Reduce carbon footprint by 90% B2B Transactions Services
    31. 31. The Open Network:enabling global commerce 1.9 million Over 1700 global customers potential suppliers 550,000 $175 billion Active buyers/ annual spend on our suppliers in Open Network 130 network interoperability partnersUp53% >50 formats VAT compliance in20.8m supported >50 countriese-invoices in 2011
    32. 32. Scan & Capture Global Coverage ✪ Offshore validation Centres • Extracting header and line data • Data validation and QA ✪ ✪✪ ✪ ✪ ✪ ✪ ✪ ✪ ✪ ✪ ✪✪ ✪✪ ✪ ✪ ✪✪ ✪ ✪ ✪ ✪ ✪ ✪ ✪ ✪ ✪ ✪ US, EMEA, APAC Scan Centers Invoice delivery & SLAs • PO Boxes/customer • Delivery to customer‘s invoice • Incoming mail handling processing solution via ✪ Basware‘s e-Invoice network ✪ • Scan batches ✪ ✪✪ ✪ ✪ • Invoice scanning • QA • Destroying/archiving/sending originals
    33. 33. Basware MobileBasware Mobile Client delivers control of the financialvalue chain to smart-phones and mobile devicesSecure connection from mobile device provides real-time access 24/7Timely handling of purchase invoices to capture earlypayment discounts and avoid late paymentsKey people can use their time out of office moreproductively32 3.2.201 - Confidential - 3
    34. 34. Why Companies ChooseBasware Invoice AutomationVisibility Control Efficiency 100% visibility of spend Regulator compliance 100% e-Invoicing Controlled automation Full PO coverage according to your policies Faster invoice cycle times 360◦ view across multiple Process transparency ERPs Straight-Through-Processing Personal accountability Accurate cash forecasting Reduced AP overhead Early pay discount Easy audit ability opportunities Lower cost per invoice Easy accruals reporting Full visibility to any invoice in the system Take early pay discounts Faster period closing Bottlenecks can be identified Higher invoice volumes per and removed Reduced human errors FTE
    35. 35. And finally…
    36. 36. Learn from the leaders.. Cut 3rd party spend by Reduced invoicing 10% costs by Receive 75% 97% of invoices as electronic invoices Reduce costs of processing expense claims by over Reduce costs of 50% Accounts Payable function by 60% Pay over 85% Process over Of suppliers within 7-10 days to 90% of invoices without capture discount any manual intervention
    37. 37. The B2B Cloud andAlusta
    38. 38. Introducing the B2B Cloud:our three advantages 1. The Open Network •Millions of transactions, thousands The Open Network of suppliers and buyers 2. Best-in-class B2B processes • Easily deployable process templates for all company sizes 3. Intelligent Cloud Collaboration Best-in-Class Intelligent Cloud • Connecting buyers and suppliers B2B processes Collaboration
    39. 39. 1. The Open Network:enabling global commerce 1.9 million Over 1700 global customers potential suppliers 550,000 $175 billion Active buyers/ annual spend on our suppliers in Open Network 130 network interoperability partnersUp53% >50 formats VAT compliance in20.8m supported >50 countriese-invoices in 2011
    40. 40. 2. Best-in-class B2B processexpertise Process Advisory templates services
    41. 41. 3. Intelligent cloud collaborationConnectivity solutions for buyersand sellers making it easy to get ontothe B2B CloudLiberated data layer allowing buyersand sellers to do business regardless oflegacy back end systems or formatsValue added transaction services
    42. 42. Basware Alusta:enabling the B2B CloudMulti-tenant cloud-based packages Social media collaboration layerProcess-as-a-service Mobile accessLiberated data structure Complete data transparencyConfigurable workflow automation Neutral connectivityUnified, roles-based user interface ERP agnosticB2B document and data exchange in Assured securityany format
    43. 43. Why companies choose Basware AlustaSimplicity Visibility Control Compliance Agility Full spend visibility and PO 100% e-invoicing Straight through processing Supplier discount capture coverage Federated accountability Cash flow, working capital Accurate cash forecasting Intelligent matching everywhere and currency forecasting and working capital Exception-based intelligent management workflows More spend managed, cash Open, interoperable global flow accuracy, faster period trading network Full supplier and contract Proactive contract visibility closing compliance Rapid on-boarding and off- Controlled travel & expense boarding Travel & expense behaviour Regulatory/VAT compliance profiles regardless of jurisdiction Hybrid deployment options
    44. 44. A Basware PresentationGiving you the financial agilityyou need to run your businessmore effectivelyPresented by NameDay/Month/Year
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