The document outlines a presentation by James Copeland of BMC Software Inc. on the process of touchless invoice processing to reduce manual handling and improve efficiencies in financial shared services. Key strategies proposed include establishing a 'no PO, no payment' policy, enhancing user training, and implementing systemic solutions to address recurring invoice issues. The results highlighted a significant decrease in invoices placed on hold and an improved first-pass yield in invoice processing.

1. Touching your invoices? You
don’t need to. 14 ‘how to’s’ to
touchless processing
James Copeland
VP FSSC BMC Software Inc.

2. Agenda
BMC
SSC at BMC
Change of process
The problem
Invoices on hold
First pass yield
Results to date
Questions?
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3. BMC by the numbers
Founded in 1980, 8th largest
independent software company
with over $2.0 billion in total
bookings and revenue (Fiscal Year
March 2012)
Corporate headquarters in
Houston, with more than 6,000
employees around the world
IT needs to be structured,
managed, staffed and deployed as
a service – a service that business
leaders can leverage to achieve
their goals and objectives
- That’s exactly what we do.
We serve
- 15,000 customers in 132 countries
- Fortune 100: 94%
- Fortune 500: 81%
- Forbes Global 100: 96%
- Forbes Global 500: 86%
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4. Shared services profile
IT
- Classic IT role FSS
CI
- Customer-facing role
- R&D-facing role
OM
IT People by
Key business processes function
- Order management (OM)
- Global procurement (GP)
GP
- Financial shared services (FSS)
Corporate initiatives (CI)
- Process improvement
Europe
- Cross departmental initiatives
Asia Pacific
People
- 789 employees Israel People by
- 36 offices Americas region
- 23 countries
India
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5. Financial Shared Services profile
FSSC - Pune FSSC – Houston
- Global accounts payable
 Invoices (TTM) 116k
Revenue accounting
– Manual inv (TTM) 58k (50%) - Staff 4
iExpense (TTM) 72k
 Professional services accounting
 39 countries - Staff 4 (Houston)
 Staff 19  1 (Amsterdam)
- Global fixed assets  1 (Pune)
 32 countries
 Staff 3 Capitalized software accounting
- General ledger - Staff 7
 EMEA region Key financial applications
– 25 countries
- Oracle11i single WW instance
– Staff 10
 Single chart of accounts
- Cash application EMEA & APAC
- Hyperion HFM and planning
 Staff 2
- BlackLine account reconciliation
- India statutory accounting
- IT2 treasury system
 Staff 5
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6. Get control of your processes – roles &
responsibilities
CFO Legal HR BU 1 BU 2 BU 3 Operations
CAO Sales IS&T
FPA Mktg Order Mgmt
Tax R&D GP
Back Office
Treasury FPA
Accounting
Risk
Mgmt
Acctg
Moved FPA to the BU’s. Moved Back Office Accounting to Business Ops.
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7. Objective
Reduce Touch
- Best case – don’t touch the invoice
 Current scenario
– 30,000 invoices per quarter
» 15,000 are manual
Increase P2P first pass invoice yield (target > 90%)
- If we have to touch it – we only want to do it once
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8. Symptoms of the problem
Historical trend of invoices on hold
600
500
400
300
200
100
0
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
09 09 09 09 09 09 09 09 09 10 10 10 10 10 10 10 10 10 10 10 10 11 11 11 11 11 11 11
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9. Increase FPY
• 1 - Train procurement, facilities and other key users
• 2 - Restrict WebReq access to “Superusers”
• 3 - Notify suppliers that “No PO - No Payment” is our policy
• 4 - Implement the Oracle iSupplier Portal
• 5 - Adopt/Require “Tiered Routing” globally for all categories
• 6 - Auto close for aged PO’s
• 7 - Issue Weekly Report that shows violators of “No/Late” PO policy
• 8 - Ensure procurement professionals are NOT entering their own
name on ANY Oracle WebReqs – that is, ALWAYS enter the name of
the actual requisitioner
• 9 - Revise process/procedure on 2-3 way match PO’s and
communicate/train users
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10. Decrease touch
• 10 - Develop & implement a systemic solution to the “Fieldglass
Receipt” issue
• 11 - Evaluate alternative front end AP process
• 12 - Implement Kofax scanning improvements
• 13 - Formal plan/approach to accelerate the rate of catalogue
integration outside of the USA
• 14 - Need formal plan and execute a “Supplemental P-Card (MC or
VISA) in large International Countries
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11. Results to Date

12. Historical trend – all regions and total
Year over year decrease – 76%
From December High – down 83%
The holds problem was primarily Region Mar-11 Jun-11 Sep-11 Dec-11 Mar-12
APAC 7 2 0 6 4
India, EMEA and North America. ISREAL 7 9 2 9 8
Significant improvement in North INDIA 31 12 8 4 6
EMEA 29 39 29 60 7
America. LAM 0 4 0 7 1
NA 80 85 97 126 11
Total 154 151 136 212 37
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13. North America Region
81% drop in holds for the quarter.
No expense reports on hold. This
was during Q4, a high volume
invoice and expense report
period.
For North America (US + Canada) total 11 invoices amounting to $65K are on Hold.
No invoices for US/ CA are above 30 days hold.
Specifics for North America (7 invoices)
2 No PO
4 Insufficient funds on PO
1 No receipt
There are no expense claims on hold
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14. North America – Process Control Chart
Green Line is the average
Red Lines are the UCL and LCL
- Set 3 standard deviations from the mean
Data points outside the red lines indicate something outside the norm has happened
- Only 5% chance that this was a random event
1st Time Pass Rate for this Week is 89.08 %, Average for END of FY12Q4 84.34 %.
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15. North America – Invoices on hold greater than 30 days
30 •Objective was to
eliminate any holds
25
greater than 30
What Changed? days
20 •No excuses weekly
video conference
15
with the P2P team
•Deep dive in all
10 older invoices
•Pick up the phone
5
0
24/10/2011 24/11/2011 24/12/2011 24/01/2012 24/02/2012 24/03/2012
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16. Identification of offenders - suppliers
Top 3 Reasons Invoices went on Hold this week:
Receipting not PO’s short of No PO / Invalid
done funds PO on invoices
Grand Total 11 4 33
Hold % age 22 % 8% 65 %
Top 7 Vendors Contributing 57 % of the Issues:
% age against
Invalid PO on Receipting not PO’s short of 1st time pass % Age against
VENDOR_NAME Total holds Grand Total total invoices
invoices done funds invoice total holds
of same vendor
Vendor 1 15 15 3 18 29% 83%
Vendor 2 3 3 10 13 6% 23%
Vendor 3 3 3 3 6% 100%
Vendor 4 1 1 2 1 3 4% 67%
Vendor 5 2 2 2 4% 100%
Vendor 6 2 2 2 4% 100%
Vendor 7 2 2 2 4% 100%
Total 23 6 0 29 14 43
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17. Identification of offenders - employees
Top 10 People: who are contributing 27 % of the holds
% age
against
1st time % Age
Invalid PO on Receipting PO’s short of Grand total
MIN_REQUESTER Department Total holds pass against
invoices not done funds Total invoices of
invoice total holds
same
vendor
5011-10010-PUBLIC
Employee Name 3 3 3 6 6% 50%
RELATIONS
5011-60009-AMERICAS CS -
Employee Name 2 2 3 5 4% 40%
GEO
5011-40649-IS AND T -
Employee Name ENTERPRISE PLATFORM 2 2 2 4% 100%
SVCS AG
5011-60009-AMERICAS CS -
Employee Name 1 1 15 16 2% 6%
GEO
5011-40012-GLOBAL
Employee Name 1 1 9 10 2% 10%
CORPORATE SERVICES CC
Employee Name 5011-40089-IS AND T - PMO 1 1 1 2% 100%
5011-40012-GLOBAL
Employee Name 1 1 2 3 2% 33%
CORPORATE SERVICES CC
5011-40649-IS AND T -
Employee Name ENTERPRISE PLATFORM 1 1 1 2% 100%
SVCS AG
5011-40650-IS AND T -
Employee Name 1 1 4 5 2% 20%
CUSTOMER OPERATIONS
5011-40254-WW OEM
Employee Name 1 1 1 2 2% 50%
ROYALTIES
Total 4 9 1 14 37 51
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18. Assess your metrics weekly
Week Week Week Week Week Week Week Week Week Week
29 05 12 19 26 04 11 18 25 01
Measurement details Jan Feb Feb Feb Feb Mar Mar Mar Mar Apr
Invoice Volumes 262 435 422 567 341 538 329 471 288 467
82.06 79.08 83.41 82.19 83.28 87.83 84.50 85.99 84.72 89.08
1st Time Pass Rate % % % % % % % % % %
Cycle Time (Avg./ St Dev) Days
– Invoice went on Hold to Hold 8& 10 & 13 & 17 & 21 & 7& 15 & 9& 12 & 15 &
resolved date 11 14 26 32 36 10 16 11 10 21
Total Hold Invoices Received in
Week 47 91 70 101 57 87 51 66 44 51
Total Holds Resolved 56 63 105 65 97 56 80 92 69 61
58 & 72 & 73 & 84 & 57 & 86 & 65 & 79 & 84 & 66 &
PO Vs Non PO (%) 42 28 27 16 43 14 35 21 16 34
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19. First Pass Yield
92%
90%
90% Objective is 90% FPY for FY13
88% 87%
86% 86%
86% 85%
84% 83%
82%
82% 81%
80%
78%
76%
Q1 FY12 Q2 FY12 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13
Actual Plan
Assuming 5,000 manual invoices Per month, we will need to eliminate:
From our low of 81% - need to eliminate 450 exceptions per month
From our year end metric of 86% - we need to eliminate 200 exceptions per month
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20. Closing thoughts
Single largest contributing factor to success
No PO No Pay
Employee contact
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21. Questions?

22. Learn more at www.bmc.com
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