[Webinar] Anatomy of AP Automation with The Institute of Financial Operations


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Take a front-to-back look at the AP automation process including the drivers, particularly for medium to large organizations, of AP automation, as well as some of the business case considerations when planning an AP automation project.

Rick Swartwood, Vice President of Professional Practices at The Institute of Financial Operations, dives into automation as interconnecting pieces which can be implemented and performed independently or as a single end-to-end business process.

You'll learn AP automation's effects on the following:
- Mailroom
- Invoice Preparation
- Data Entry
- Invoice Approval/Discrepancy Resolution
- Payment Processes

Published in: Economy & Finance, Business
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[Webinar] Anatomy of AP Automation with The Institute of Financial Operations

  1. 1. Connected at last. Anatomy of AP Automation Sponsored by Anybill April 17, 2013 Rick Swartwood VP Professional Practices Institute of Financial Operations
  2. 2. About AnybillConnected at last. ANYBILL.COM CONTACT: info@anybill.com bchou@anybill.com
  3. 3. Agenda Connected at last.• AP Automation at a Glance• AP Challenges and AP Automation Opportunities• AP Automation – Getting There• Business Case Considerations• Benefits of AP Automation• AP Automation Summary
  4. 4. Polling Question #1 Connected at last.• Does your organization currently utilize any type of AP Automation?• YES• NO
  5. 5. AP Automation At a Glance Connected at last.• Many Shapes, Sizes, and Moving Pieces• Three Key Focus Areas – Receive Invoices – Process Invoices – Pay Invoices• Often Looked at as Independent Pieces
  6. 6. Key Focus Areas of AP Automation Connected at last.• Greatest Value comes from a Connected Automation Strategy
  7. 7. Receipt of Invoices Connected at last.• Key Challenges – Most invoices arrive on paper – Electronic Data arrives in different formats – E-mailed invoices require manual processing• Key Automation Advantages – More efficient use of resources- especially mailroom – Standard data format for ERP integration – Low and no-touch invoice handling
  8. 8. Processing of Invoices Connected at last.• Key Challenges – Paper invoices require much manual effort – Discrepancy resolution is time consuming – Top-down cost reduction pressure• Key Automation Advantages – Electronic data provides efficient invoice management – Discrepancies are corrected at invoice receipt – Increased AP efficiency and reduced costs
  9. 9. Payment of Invoices Connected at last.• Key Challenges – Paper checks still the most popular & most expensive – Missed early payment discounts – Unpredictable cash out-flows• Key Automation Advantages – Lower transaction costs – Increased accountability – Increased cash management capabilities
  10. 10. Polling Question #2 Connected at last.• Is your organization considering any type of AP automation activity?• Yes – within the next 6 months• Yes – within 7 months or more• No• We already have AP automation in place
  11. 11. Automating the Receipt of Invoices Connected at last.• Key Tenant - Eliminate Data Entry – Suppliers send invoices to a 3rd party for data entry – Electronic data feeds from 3rd parties – Use of PO flip & portal technology – Use of Evaluated Receipt functionality – Use of P-Cards w/Electronic data feeds• OCR and ICR capabilities – Invoices scanning eliminates data entry – Does not optimize mailroom processes
  12. 12. Automating the Processing of Invoices Connected at last.• Key Tenant – Electronic Invoice Approval/Resolution – Prevent bad invoices from entering AP – Strong 3-way match validation rules – Proper GL Coding/Classification – Use of optimized 3rd party AP platforms – Workflow for invoice approval
  13. 13. Automating the Payment of Invoices Connected at last.• Key Tenant – Electronic Payment – Eliminating checks reduces transaction costs – Electronic payment ensures consistent cash management – Buyer initiated payments are catching on – P-Cards • Aggregate many payments into one • Electronic payment to merchants • Electronic invoice detail from provider
  14. 14. Other Automation Considerations Connected at last.• Reporting – Process optimization requires data visibility & analysis• Organization Size and Complexity – Different sized organizations require different approaches• Technology Platform – An organizations technology platform may dictate one direction or another• Process Connection – Automating individual AP pieces does not bring the same value as an end-to-end connected approach
  15. 15. Benefits of AP Automation Connected at last.• Process Improvements• Cost Reductions• Error Reduction• Greater Process Control• 24/7 Accessibility• Data Visibility• Improved Cash Flow Management• GETS PAPER OUT of the process
  16. 16. Business Case Considerations Connected at last.• What is the opportunity? – Is the process manual, error prone and costly? – What is the invoice volume?• What processes need automating? – An end to end process – or just pieces?• What is your technology platform? – ERP based – homegrown – or a mix?• What providers match up with your requirements? – In terms of reputation, philosophy, experience with your organization size and culture?
  17. 17. Measuring Success/ROI Connected at last.• Percent of invoices transformed from paper to electronic• Cost to process an invoice• Percent of “first pass yield” invoices• Redeployment of resources to more value-add tasks• Cash flow efficiency• Control efficiency
  18. 18. Polling Question #3 Connected at last.• What technology does your organization use for AP processing?• SAP• Oracle• PeopleSoft, JD Edwards, Other ERP• Other/Homegrown
  19. 19. AP Automation Summary Connected at last.• One size does not fit all – Each organization is unique and has different needs – Technology and other factors may dictate a specific course of action• A well-connected end-to-end process add more value – The whole is greater than the sum of its parts – An approach that incorporates various options while maintaining end-to-end continuity is best• Choice of service providers is key – Just as every organization is unique so are service providers – look for the best fit for your organization
  20. 20. AP Automation White Paper Connected at last.• You will be receiving an advanced copy of the whitepaper, Anatomy of AP Automation, after this webinar prior to its official release• Sponsored by Anybill
  21. 21. Connected at last. QUESTIONS? CONTACT: info@anybill.com bchou@anybill.com