This document discusses the importance of accurate procurement data for invoice automation. It begins with an introduction to OpusCapita and its invoice automation offering. It then discusses how top performers have close cooperation between procurement and accounts payable. Five key points for successful invoice automation are presented, emphasizing the importance of consistent use of purchase orders and data quality. Purchases are highly correlated with invoice processing, and inaccurate procurement data can lead to unmatched invoices. Several examples of errors that can cause invoices to not match are provided. The document concludes with practical examples of how invoice automation handles price differences and extra costs on invoices.

1. Why accurate procurement data is critical
to invoice automation
Tommi Kouhi
Tobias Wikström

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Agenda
• Introduction Invoice Automation in OpusCapita’s offering
• Why accurate procurement matters for Invoice Automation?
– Top performers
– Five key points for successful invoice automation
– Purchases and the correlation to invoice processing
• Examples of errors sources
• Three practical examples – Procurement and invoicing working together!
• Closing remarks
2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation2

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OpusCapita by the numbers
Company:
• Founded 1984
• Over 2100 employees
• Revenue €257 million (2015)
Buyer-Supplier Ecosystem:
• 8 000 customers in over 100 countries
• ~100 000 suppliers
• 600 million transactions annually, 200 million
processed purely electronically
• 40 million different products bought and sold

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OpusCapita: Extended Purchase-to-Pay
2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation
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Why accurate
procurement
matters for Invoice
Automation?

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Poll 1 - How well are your activities in accounts payable
aligned with the activities of your procurement department?
• We have none or low level of cooperation
• We have some level of cooperation
• We continuously operate together
• We are fully streamlined and prioritized
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What is the value of an efficient Accounts Payable process?
2.5x
faster
89%
Increased
Source: The Hackett Group & OpusCapita Analysis
60%
lowercost
cooperation
Best-in-class organizations look like this
2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation7

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Five key points for successful invoice automation
Get your free copy: http://www.opuscapita.com/whitepapers/5-key-points-for-successful-invoice-automation
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Are we consistently using Purchase Orders?
What to do with maverick spend?
Can we improve data quality
by increased usage of
e-invoicing?
Increasing automation with:
“No-PO, No-Pay policy”
Are our invoice approval policies
consistent across the company?
How to align the targets
throughout the P2P process?
Control & visibility
2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation

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Purchases and the correlation to invoice processing
2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation9
3-way match and
possibility to apply
tolerance limits and
manage extra costs
(e g freights)

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POLL 2 – Indirect purchases
• We don’t have any eProcurement system in use.
• Some of the indirect purchases are done via eProcurement system.
• All (or almost all) indirect purchases are done via eProcurement system.
Do you have any purchasing system for indirect purchases in use?
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POLL 3 – Unmatched invoices
• POs are missing.
• POs exists but GRs are not done.
• Price differences.
• Extra costs on invoices.
• Misinterpretation on invoice data.
• Other reason.
Which are the main reasons why invoices doesn’t match against POs/GRs?
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Three practical
examples

13. Invoice fully matched against matching
items

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Invoice matched automatically, initial state
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Invoice matched automatically, invoice matched
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Invoice matched automatically, postings from the matching
items
2.11.2016 Webinar - Why accurate procurement data is critical to invoice automation16

17. Price difference when matching an invoice

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POLL 4 – Price difference
• We allow the price differences if it is in tolerance and match the invoice.
• We always send an invoice with price difference for manual matching to purchaser or
orderer.
• We update the correct prices on the POs and generate new matching items for invoice
matching.
• Other.
How do you handle invoices with price differences?
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Unit price difference on invoice vs. matching item
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Unit price difference on invoice vs. matching item
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21. Extra costs on invoice

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Shipping cost on invoice
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Approve extra costs within tolerance automatically
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Closing remarks
http://www.opuscapita.com/events