Automation of accounts payable process using AI technology, Digital Invoice Application helps you digitize end to end processing of vendor invoices through automation, workflows with best practices. The solution enables businesses to meet critical payment and compliance deadlines, reduce the time it takes to process invoices. Streamline Accounts Payable Operations with Optimized Invoice Processing

1. E-Invoicing for India
Digital invoicing Application
Automating Accounts Payable process
Presentation by
Mohammed Abrar
https://www.linkedin.com/in/mohammed-abrar/

2. Comprehensive invoice processing
- Process all incoming invoices
- Manage invoice processing from any location using our centralized solution integrated with backend SAP ERP
instances
Automated processing
- Automatically recognize invoice data with the OCR approach
- Manage Accounts payable processes automatically using configurable business rules
- Easy to customize approval mechanism from invoice scan to final posting of invoice to SAP
- Flexi-workflows to sort and route invoices based on user roles, authorization rules, and predefined timelines.
AP-process integration and financial control for complete invoice management
- Seamless and tight integration with SAP Accounts payable processes for invoice posting
- User-friendly interface provides access to a unified view of invoice data and documents
- Stakeholders can access invoices, resolve problems, and route invoices for approval
Digital Invoice Application - Features
Improve business and reduce compliance risks
• Enable more accurate financial reporting through complete visibility
• Segregate duties through workflow control
• Monitor across all steps of the invoice process
• Provide complete audit trail

3. Manual Invoice Processing
An inefficient and serious risk to your business
Manually managing invoices
processes drains resources
• Time-consuming historical research
• Belabored vendor communications
• Documentation and other requests for additional
information
• Manual routing
• labor-intensive monitoring and updates
• Scalability only through headcount
Inefficient, labour-intensive
processes
• Inability to optimize cash-flow and vendor
relationships
• Inability to improve overall business
transparency
• Lack of process control introduces compliance
risk

4. Organizational Gains from
Digital Invoice Application
Simplify and optimize entire invoice
management process
• Create workforce efficiencies through an
automated, streamlined process including mobile
approvals
• Improve working capital management through
better visibility to cash requirements
• Cut costs through automated data extraction,
process automation and control including shared
services
• Reduce costly manual errors
• Optimize cash discount utilization including dynamic
discounting
Improve business and reduce
compliance risks
• Enable more accurate financial reporting
through complete visibility
• Segregate duties through workflow control
• Monitor across all steps of the invoice process
• Provide complete audit trail

5. Value drivers from Digital Invoice Application
• Processing cost per invoice by 30-50%
Additional saving and efficiency gained through
• reduction in invoices processed per AP processor by 60-80%
• reduction in vendor status calls AP processor by 60-80%
• reduction in duplicate invoices by 50-80%
• reduction in percentage of invoices with problem from 35% to less than 10%
• Increase in percentage of possible discounts taken from 75-80% to upwards of 95%
• Cumulative 5 year invoice processing cost savings ≈ INR 5 Cr.
• NPV = INR 1.55 cr.
• ROI is achieved in year 3
• assuming 60, 000 vendor invoices/year with a YoY growth of 20%

6. Business Value Solution

7. Processing a Non PO-based Invoice
Income
Invoice
Scanning/O
CR
Indexing
Validation
Duplicate
Check
Maintain
tax
Accounting
/Coding
Requesting Approving Document
post
Invoice
Cockpit
Indexer
Validation
Duplicate
Check
AP
Processor
Requestor
Approver
Tax Expert

8. Processing a PO-based e-invoice with VIM
Incoming Invoice Application Invoice
Cockpit –
OCR Scan
Validation,
if Any
Processing
Invoice
Approving Document
post
DIA
Transform
Data (OCR)
Duplicate
Check
AP
Processor
Approver

9. Inbox (incoming
mail/fax)
Invoice
recognition
Invoice
Verification
Monitoring Invoice
Completion
Payment
OCR
Scanning Trigger
workflows
Logging Post Invoices
AngularJS Front End
Validation
OCR Option for
Digial Invoice
Application ERP (FI/AP)
Prepare Transform
Verify &
Complete
Exception
Handling
Approve Pay
Digital Invoice Application
Supplier
Email
Digital Invoice Application
Process flow
Amazon WS Cloud
Hosting

10. Digital Invoice Application
Process flow
Validate
Data
• Invoice data
captured in
respective fields
• Review data for
accuracy
• Modify invoice data
incorrectly or not
captures
• Incoming invoices
via mail/paper
• Invoice cockpit for
invoice processing
• OCR – Extract/Read
invoice data
• System checks for
duplicates
• Validated against
the rules defined by
DIA engine
• Trigger Workflow
for Approval
• Invoices posted to
SAP FI-AP
Image &
Data
Capture
Apply
Business
Rules
Post
Invoice

11. Image Capture
▪ The Organisation receives the invoices and related documents a mailing room in a paper form
▪ Mailing room delivers the invoices to business users for processing
▪ Invoice images are registered in SAP digital invoice application analytics with a sequential ID
Data Capture
▪ OCR System extracts the invoice from the archiving server at regular interval.
▪ OCR system then reads the invoice data from the invoice images.
Validate Data
▪ Invoice data is captured in respective fields for processing
▪ Reviews the invoice data for its accuracy and completeness
▪ modifies the invoice data which has not been captured properly or key in the data where it
has not been captured
Apply Business Rules
▪ Invoice are Checked for duplicate records
▪ Invoice are validated for business rules defined
Post Invoice
▪ On successful validation of business rules, it triggers a workflow for approval
▪ On approval, invoices are posted into SAP ERP system
Digital Invoice Application

12. Invoice Document is Scanned
by the OCR
Printed Invoice data is extracted and
converted to a digital format by the
OCR, this data is called as raw data
and raw table
Key Value Pairs
(Example)
Final Output/Result
Note: The More the AI gets trained, the more rate of accuracy we get in terms of field mapping
Final Output/Result
(Artificial intelligence) AI Model is trained
to identify different fields from different
invoices and map it to respective final
output fields.
Backend process flow

13. • Multiple business users are involved in End to End (E2E) processing of invoice
• Business users perform the respective activities based on Segregation of Duties (SoDs)
Copy
Copy
Copy
Accounts Payable Process

14. Term Description
OCR Optical Character Recognition. The component automates the capture of paper
invoices by using OCR to extract invoice data
Document Processing This component captures invoice metadata, handles suspected duplicate
invoices and collaborates with other components.
Invoice Cockpit This component receives a list of invoices to be approved and codes and
approves the invoices.
Approval Rules
Engine
Flexi and Easy Customizable -Approval Flow Engine to design approval flows
within a span of few minutes
Mobile Approval Allows the user to approve invoices on a mobile devices like iPhone, iPad,
Blackberry and android based mobiles.
Exception Handling Allows for the handing of exceptions that arise after SAP invoice is created.
Reporting Various reports to analyze the status of invoices in the unified cockpit
dashboard
Key Components

15. ▪ The Organisation receives the invoices and related documents a mailing room in a paper form
▪ Mailing room delivers the invoices to business users for processing
▪ Business user performs the following activities:
▪ Sorts the invoices and other documents
• review the invoices to check whether the invoices can be scanned
• Coordinates with Vendors where quality Of the invoices need to be enhanced to scan
properly
• Puts a bar code and scans the documents using enterprise scan software and it acts as
the separator between invoice, main page and additional supporting documents
• Checks the quality of the scanned documents i.e. quality of images and ensures that all
pages are scanned in the correct set
• Transfers the images to archiving server
▪ Invoice images are registered in SAP VIM analytics with a sequential DoclD
Capture -image — Paper invoice
Capture Image Capture Data Validate Data
Apply Business
Rules
Post Invoice

16. ▪ OCR System extracts the invoice from the archiving server at regular interval.
▪ OCR system then reads the invoice data from the invoice images.
Capture Image Capture Data Validate Data
Apply Business
Rules
Post Invoice

17. ▪ Business users then performs the following activities:
• Logs into Invoice Capture Centre (ICC) validation client
• Opens the Invoice images for validation
• Invoice data is captured in respective fields for processing
• Reviews the invoice data for its accuracy and completeness
• modifies the invoice data, which has not been captured properly or
key in the data wherein it has not been captured
• Submit the data for validation of business rulesy
Capture Image Capture Data Validate Data
Apply Business
Rules
Post Invoice

18. Capture Image Capture Data Validate Data
Apply Business
Rules
Post Invoice
▪ Invoice are Checked for duplicate records
▪ Invoice are validated for business rules defined

19. Capture Image Capture Data Validate Data
Apply Business
Rules
Post Invoice
▪ On successful validation of business rules, it triggers a workflow for approval
▪ On approval, invoices are posted into SAP ERP system

20. Cloud Setup
and
Connections
Baseline
Configurations
Deployment
Customizing
and Testing of
Solution with
SAP
Move to
Production
Transfer to
Support
Deployment Model

21. Improve profits
- Shortens payment cycle with streamlined workflows and timely reminders
- With faster invoice processing, improve cash cycle for the year
Reduce costs and boost productivity
- Significant reduction of manual operations
- Enables offshoring of operations with increased productivity
Streamlines the invoice process
- For Account payable personnel
- For Shared services to scan through multiple invoices in a short period of time
- For Finance Leads to monitor and streamline approvals
Improve vendor relations with shortened Scan-to-pay cycles
- Connect with your suppliers through the cloud in real time to improve supplier collaboration
and ability to provide accurate and current information.
- Improves vendor/supplier relationships with faster invoice processing and increased visibility.
Benefits of Digital Invoice Application

22. Thank You
Presentation by
Mohammed Abrar
https://www.linkedin.com/in/mohammed-abrar/