The document discusses the automation of accounts payable (AP) processes using Oracle WebCenter and its associated tools, focusing on common challenges such as high processing times and staff inefficiencies. It outlines a recommended solution involving digitization, imaging, and business process management (BPM) to streamline operations and reduce labor costs, while also highlighting the benefits, both tangible and intangible, that can result from implementation. A case study illustrates the positive outcomes of AP automation for an energy utility, with a projection of significant financial benefits over several years.

1. Accounts Payable Automation for
EBS or PeopleSoft with
Oracle WebCenter
Brian “Bex” Huff
Chief Software Architect

2. 2
Agenda
 Common pain points and challenges
 Solution: AP process automation
 Software required for the solution
 Which level of automation is cost effective?
 Screenshots
 Case study
 Questions?

3. 3
AP Problem Overview
 Common AP Pain Points
• Too little staff for too many invoices
• Invoices without associated purchase orders
• Processing takes over 30 days, sometimes incurring penalties
• Never get “early payment” discounts due to workload
• Too many paper invoices, not enough digital
• Lack of appropriate training for staff
 Is there business value in automating accounts payable?
• What are the tangible and quantifiable benefits?
• What are the intangible benefits?

4. Solution: AP Process Automation
4
Done!
CONTENT MANAGEMENT
Provide additional
information via
secure mark-ups &
comments
Finalize review & processing
via Application
Capture paper,
electronic & fax
documents via
integrated scan,
import & data
extraction
Access imaged
documents and tasks
via EBS/ PeopleSoft
Process via workflow and
automated notifications for
approval and exception
handling tasks
Monitor processes and
queue loads

5. 5
Key Challenges
Labor Effort to
Process
Physical
Documents
Processing
Time for
Invoices
Engagement
with External
Departments
• Invoices
• Utilities
• Lack of POs
• Manual routing
process relies on
individual knowledge
of authorization levels
• Manual routing
process relies on
individuals to process
invoices in a timely
manner
• Education of other
departments on AP
Processes and
Systems challenged
• Need feedback on
process
improvement

6. 6
Labor Effort to Process Physical Documents
 Challenge:
• Effort required to enter invoices into system
• Number of line items on bills increases effort required over regular invoices
• Bringing on extra FTEs to keep up with volume
 Recommendation:
• Require all invoices to be sent to AP directly
• Deploy image recognition system to automate invoice capture
• Deploy automated workflow solution with automated approval workflow for
invoices without issues
• Frees up resources in all departments

7. 7
Processing Time for Invoices
 Challenge:
• Approvals require institutional knowledge of signing levels and department
managers
• Routed invoices may sit on approval managers desk
• Research on issues can take up to 72 hours
• Missed opportunities for early payment refunds
 Recommendation:
• Increase the number of invoices delivered digitally
• Deploy automated approval system with time based notifications

8. 8
Engagement with External Departments
 Challenge:
• Lack of training on systems and process introduces challenges
• No POs, or incorrect POs
• Challenged to understand needs of new departments
• Challenged to adapt to new priorities
• Invoices without purchase orders can require 3 to 4 additional touch points
 Recommendation:
• Engage input from other departments through workflows
• Automate capture of invoices, and automatic routing
• Implement process consistency to reduce inefficiencies

9. Manual Process
Department
Invoice
Accounts Payable
Approval
Transmittal
Packet
Audit Payment
Specialist

10. Automated Process
Department
Invoice
Accounts Payable
Approval
Audit Payment
Specialist

11. 11
AP Automation: Three Main Areas
 Capture: digitizes documents & extracts data
• Paper, Faxes, Print Streams, etc.
• Pulls key data from documents to decrease manual entry
 Imaging: stores, retrieves & manages documents
• Provides a centralized repository with lifecycle management
• Enables seamless search and access from within application Uis
 BPM: capabilities accelerate document-driven processes
• Workflow enables faster and complex routing of documents
• Monitoring provides insight into key performance metrics

12. 12
AP Automation: What Software do I Need?
 Capture: digitizes documents & extracts data
• WebCenter Enterprise Capture
• Oracle Forms Recognition
 Imaging: stores, retrieves & manages documents
• WebCenter Content / Imaging
• WebCenter Application Adapters for EBS and PeopleSoft
 BPM: capabilities accelerate document-driven processes
• Oracle Business Process Management Suite
• Financials Image Processing Solution Accelerator

13. 13
AP Automation: When is it Cost Effective?
 LOW: <1,000 invoices / month
• Back-end capture and archive at process completion
• Accessed via searches on image indexes
 MID: 5,000 invoices / month
• Front-end Capture and Data Entry
• Invoices scanned centrally or remotely upon receipt
• Routed to ERP for data entry (Key From Image)
 HIGH: >10,000 invoices / month
• Front-end intelligent capture & workflow
• Invoices scanned upon receipt
• Automated extraction of PO number, vendor, and price
• Human intervention only required for exceptions

14. 14
Enterprise Capture

15. 15
Oracle Forms Recognition
 Import
• Docs as multi-page TIFFs
• Metadata parsed from file names
 OCR
• 'Read' all text on all pages
 Classify
• Identify the document type
 Extract Data
• Based on document type
 Verify
• Manually correct extracted data
 Export
• Images and data

16. 16
WebCenter Content/Imaging

17. 17
SOA/BPEL Connectors to EBS/PSFT
 External processes can pass metadata fields into payloads
 The UI maps between BPEL and metadata fields and can support
in-line values:
• http://host:port/imaging/faces/Pages/UrlTools.jspx?ToolName=ExecuteSea
rch&SearchName=[Claims]&ClaimNum=[CNum]

18. 18
Financials Image Processing Solution Accelerator

19. Solution Accelerator with EBS
19

20. Simplified Process Flow
20
Scanning System
(ODC, Kofax)
Drag-n-Drop
OFR Input
Folder
OFR
(Classify & Extract)
To Be
Corrected
Batches
OFR Verifier
(Corrections)
Imaging
Monitored
Folder
WebCenter Content
Imaging
EBS/
Workflow

21. Oracle Document Capture
21

22. Oracle Forms Recognition
22

23. Forms Recognition Line Pairing
23

24. WebCenter Content: Imaging
24

25. WebCenter Content: Imaging
25

26. Full Automation with SOA/BPM
26

27. Exception Handling Task Viewer
27

28. PeopleSoft Worklist and Approval
28

29. PeopleSoft Adapter
29

30. EBS Adapter
30

31. 31
Case Study: AP Automation for Energy Utility
 Centralize AP receiving
 Require invoices to have POs
 Deploy automated forms recognition solution
 Deploy automated AP Workflow solution

32. 32
Case Study: AP Automation for Energy Utility

33. 33
Business Case: Tangible Benefits
 Reduction in transactional labor activities
• Redirect to higher level activities
 Reduction in paper, storage, and handling
 Reduction in audit and compliance costs
• Automation of document lifecycle and retention
 Capture of incremental early payment refunds
• Early payments that can be captured today
 Capture of potential early payment refunds
• Early payments that can’t be captured today

34. 34
Business Case: Intangible Benefits
 Improved relationships with vendors and suppliers
 Increased interaction with departments outside of AP
• Less time spent tracking down POs and contracts for AP
 Improved financial controls, security and auditability
• Document access, viewing, changes, printing, version control
 Increased employee job satisfaction
• More time for higher value activities
• Are we getting the best deal from our vendors?

35. 35
AP Automation Benefits for Energy Utility
Automation Benefits Year 1 Year 2 Year 3 Year 4
Capture 40% 60% 80% 100%
Invoice Processing $82,740 $124,110 $165,480 $206,850
AP Producitivity $72,900 $109,350 $145,800 $182,250
Department Productivity $150,000 $225,000 $300,000 $375,000
Incremental Annual
Refunds $40,000 $60,000 $80,000 $100,000
Potential Annual Refunds $104,000 $156,000 $208,000 $260,000
Total Benefits $449,640 $674,460 $899,280 $1,124,100
Breakeven is typically achieved in 2 years

36. 36
 My Company: http://bezzotech.com
 My Blog: http://bexhuff.com
 My Self: bex@bezzotech.com
Questions?