Top financial use cases for intelligent document processing https://www.emagia.com/resources/ebooks/top-financial-use-cases-for-intelligent-document-processing/

1. Top Financial Use Cases for
Intelligent Document
Processing

2. • Introduction
• What is Intelligent Document Processing (IDP)?
• IDP Use Cases in:
• Claims (Deductions) Processing
• Supplier Invoices (Accounts Payable)
• Order Processing
• Cash Application
• Credit Control
• Treasury
• Benefits
• Customer Success Story
• Conclusion & Your Questions
Agenda

3. 3
Introduction
• Is there never enough time for higher level analysis and improvement
initiatives?
• Is speed of customer response a critical success factor?
• Is productivity an important part of your profitability and
competitiveness?
If so, then Intelligent Document Processing (IDP) is for you!
Financial documents:
a. are numerous with wide variation in format
b. are complex, detailed, and unstructured
c. data extraction is difficult
d. will slow down a process if used in hard copy form
IDP overcomes these challenges!

4. 4
Introduction (continued)
It is estimated (by 10xDS) that 80% of financial data arrives in an
unstructured form
Key Tasks in Processing Unstructured Data:
a. understand the context and use of the document
b. extract only the required data (even from handwritten
documents)
c. combine the context with the data
d. route to next step in the process
Historically, processing unstructured data required human
intelligence to cope with the wide variation.
IDP automates the handling of unstructured data.

5. 5
What is Intelligent Document Processing?
Intelligent Document Processing (IDP) extracts & converts unstructured data into
a usable format for the next step in processing that data. It extracts all and only
the required data.
It utilizes cognitive Artificial Intelligence (AI) and other related technologies such
as Machine Learning, Natural Language Processing, and Robotic Processing
Automation (RPA).
Source documents are scanned & data is extracted:
• The documents are stored digitally
• The data is available to authorized users anywhere in the world, 24/7/365 in
digital form.
Cognitive AI data extraction is faster, cheaper and more accurate than having
humans read documents. Even Robotic Process Automation (RPA) doesn’t work
as well with multiple unknown document formats.
IDP accommodates multiple languages and currencies & delivers
substantial increases in speed, accuracy and productivity

6. 6
IDP Use Cases: Claims (Deductions)
• Extracts required data from Vendor or EIPP Portal, Remit advice,
email, debit memo, etc. and automatically create deductions to be
routed for resolution
• Key data includes customer number, invoice # & value, payment
# & value, deduction value, dates, reason code, etc.)
• Establishes unique record for every individual deduction
• Stores digital images of all documents
• Executes Automatic Small Balance Write-Off

7. 7
IDP Use Cases: Supplier Invoices
• Extracts required data from invoices delivered via Vendor Portal,
EDI, email, postal mail, etc.
• Automatically extracts data required to approve & pay an invoice
(vendor name & number, PO #, invoice # & value, payment due
date, prompt payment discount, etc.)
• Retrieves applicable receiving document and PO
• Establishes unique record for every individual vendor invoice
• Data arrayed in CSV file and fed into AP system

8. 8
IDP Use Cases: Order Processing
• Extracts required data from orders delivered via Fax, email
(including pdf files), EDI, postal mail, etc.
• Automatically extracts data required to accept & fulfill an order
(customer name & number, PO #, SKU #/quantity/price, payment
terms, prompt payment discount, tax status, delivery address, etc.)
• Establishes unique record for every individual order
• Data arrayed in CSV file and fed into Order Fulfillment system

9. Extracts remittance data from multiple customer sources with varying
formats, such as:
• Customer Vendor Portals
• Your own EIPP Portal populated by your customers
• Excel/PDF files and statements from customers and lockboxes
• EDI 820 or BAI2 transmissions from customers
9
Constructs file (CSV or other formats) for input into auto-cash
engine to apply receipts to correct invoices
• Integrates with bank lockboxes, your own AR and Collection modules and
with ERP system
• Auto-Cash engine can yield 85 – 95% hit rate
• Enables pre-set tolerance levels for matching payments to open invoices
• Outperforms RPA when dealing with multiple unknown document formats
IDP Use Cases: Cash Application

10. 10
IDP Use Cases: Credit Control
• Extracts required data to conduct a credit investigation from the
credit application (company legal name, address, tax ID, etc)
submitted via Fax, email (including pdf files), postal mail, etc.
• Automatically checks business licenses, OFAC list, credit bureau
data, etc. to enable credit vetting
• Establishes credit file for the individual company
• Data arrayed in client specified format to facilitate review

11. 11
IDP Use Cases: Treasury
• Automatically extract data from bank statements:
a. paper statements that have been scanned
b. electronic/digital format statements from bank
• Retrieve data from check register and GL (bank fees)
• Reconcile bank data to check register & highlight any
discrepancies
• Store digital images of all documents

12. 12
Benefits of IDP
Faster response to Customers
Exponentially Increased Employee Productivity & Morale
Increased accuracy and quality of operations
Speed, Productivity and Accuracy
Improved Customer
Experience/Satisfaction
Increased
Productivity
Lower Cost Increased Revenue
& Profit

13. Case Study – Global Medical Products Company
• Operates in 45 countries, 15 languages, 16 bank accounts
• Established in-house Global SSC in Portugal (ended BPO)
• Embarked on Digital O2C Transformation
Implemented Document Data Capture Assistants for :
Cash Application: Auto-cash hit rate increased from 30 to 70%
Deductions: Resolution time decreased from several weeks to < one week
Collections: Current AR increased by 25%; FTE’s decreased by 45%

14. Conclusion
IDP in Financial Operations:
• Are used by many leading companies TODAY !!
• Increase productivity by 70 - 90%
• Enable faster response to customers
• Improve the accuracy of transaction processing

15. Questions

16. Orders
Credit
Cash
Application
Collections
Deductions
Payments
Invoicing
If you have any questions or comments
about this session, please let us know
in the chat box or write to us at
info@emagia.com
Next Emagia Master Class Session:
Topic: How Intelligent Document Processing
is Driving AR & AP Productivity