4 Benefits of a Digitized and Automated AP System

The Accounts Payable & Procure-To-Pay Conference & Expo is produced by:

Four Benefits of a Digitized and Automated Accounts Payable System

John Burns: AP Automation [email protected]

mailto:[email protected]


About Flatirons Solutions

Our Vision:Aerospace

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Defense

Financial Services

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Electronics

Together we make a difference in the world by innovating to turn content into knowledge and delivering the right information at the right time to the right people

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Turning Content into Knowledge®

To Help Our Clients SucceedOur Mission:

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Content Lifecycle Management (CLM)

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Irvine, CAHeadquarters

Phoenix, AZ

Arlington, VA

Austin, TX

Kongsberg, Norway

Copenhagen, DKEMEA headquarters

Örebro, Sweden

Frankfurt, Germany

London, UK

Chennai, India

Shanghai, ChinaASIA

headquarters


Four Benefits of a Digitized & Automated AP System

1. Cost Reduction: Significantly reduce the human processing effort and related costs by automating the

extraction and validation of digitized AP data elements.

2. Revenue Enhancement: Optimize your cash position by managing early pay discounts and avoid late payments. Use

automated 3-way matching (invoice, PO, shipping) and specialized exception queues for issue resolution that optimize cash flow and minimize labor costs.

3. Risk Reduction: Secure your financial data so it is visible to the right people at the right time so they can take

action. Provide full audit tracking to prevent fraud and use tightly integrated records management for automated retention and disposition.

4. Improved Visibility: Allow AP staff, Finance, business users, and vendors to have real-time access to status,

dashboards, and ad-hoc reporting.

3


Accounts Payable Challenges

Organizational

Efficiency

Missing workflow & automation

benefits

AP Best practices not implemented

Personnel waste of time on

transactional data

Cost Savings

Costly manual

processes

Discounts not realized, Late

payment penalties

Better management & reporting for month

end closing

Control & Complianc

e

Approval Policies not consistently

followed

Process compliance with SOX,

audits.

No records of invoice

history, approval


Minimal correlation between the size of the company and the cost to process an A/P invoice

PayStream Advisors, Inc.

Processing Benefits


Definition ofMaturity Class Mean Class Performance

Best-in-Class:Top 20%

of aggregateperformance scorers

4.1 days to process an invoice from receipt through approval $3.34 average cost to process an invoice from receipt through

approval 90% capture rate for available early payment discounts

Industry Average:Middle 50%




Laggard:Bottom 30%




Source: Aberdeen Group

Processing Benefits


Captiva - Capture

• Faster processing; limit delays transporting paper

• Reduce risk of lost or misfiled documents

• Enable knowledge experts to contribute directly

Mobile Capture

Sweep from Network DirectoriesMonitor

Email Addresses

Web Client—Scan and Indexwith Store & Forward

Desktopor High SpeedScanners

FaxTransmissions

Network-attached MFP


AppsForms

Quotes

ClaimsTaxReturns

Contracts

CLASSIFIED DOCUMENTS

Captiva – Automated Classification

Invoice Number Vendor Name Purchase Date Subtotal Grand Total Payment Terms

10010 Acme Products 30 January 2008 $ 6,014.81 $ 6,025.88 Net 30 Days

Capture Classify Extract Validate Deliver

Enable capture of all documents throughout the organization

– Identify document types based on graphic and text characteristics

– Route documents to appropriate business processes or departments

Reduce costs of preparing documents for capture

– Eliminate need for document separators and barcodes

– Improve capture of multiple document types and multi-page documents


Invoice Number Vendor Name Purchase Date Subtotal Grand Total Payment Terms

10010 Acme Products 30 January 2008 $ 6,014.81 $ 6,025.88 Net 30 Days


Captiva – Automated Extraction

Extract critical business data based on document type

– Simple indexing to extensive data extraction

Extract using zonal and freeform techniques

– Enhanced extraction reduces manual costs and enables faster, more accurate business processes


• Invoice Number• Vendor Name• Purchase Date• Subtotal• Grand Total• Payment Terms

• 10010• Acme Products• 30 January 2008• $ 6,014.81• $ 6,025.88• Net 30 Days


Invoice #PO NumberTotal

102214 98003278 $7,206.50

• Validate automatically against data sources, business rules, and applications

• Manual validation to inspect errors or to enable data correction

• Maximizes data accuracy before delivery to business systems. Populates fields from external data sources.

VendorDatabase

orWeb Service

Ensuring Accuracy Through Validation

Captiva Details - ValidationCaptiva – Automated Validation


Next Generation Case Management(aXcelerated Composition Platform)

Flexible pre-built workflow process

Dashboard reporting and monitoring

Collaboration and integrated messaging

Configurable role based interface

“Smart” routing and notifications

11

Documentum - xCP


xCP Built on Core Documentum Repository

Document versioning Maintain a complete record

Integration with CRM & ERP

Systems

Document / Lifecycle

Management

12

Documentum - xCP


PROCESS

CONTENT

COLLABORATION

POLICIESPEOPLE

DATA

ALL INFORMATION IN CONTEXT

Documentum - xCP


Graphical tools for creating and managing intelligent forms

Integrated data, UI, and validation elements

Documentum - xCP


Records & Retention Management


Solution Overview

Captiva Server(s)

Capture / OCR Module

ERP

Captiva Index, Validation Clients

Index ModuleExport Module

Documentum Taskspace (xCP URL)

Index ModuleDispatcher,Validation,

Index ModulesWatch Directory

Scan

FaxInvoices

ElectronicInvoices

PaperInvoices

StreetWorX Invoice Automation Solution – Capture Components

xIA SolutionAP Interfaces

Documentum

StreetWorX Invoice Automation Solution – Repository & BPM Components

Header, Line Item Validation

& MatchingGL Coding

Index ModuleIndex ModuleWorkflow &

Approvals

Accounts Payable

BU Managers

Executive Approvers

Suppliers

Accounts Payable

BSC xIA Solution – Supplier Portal


Solution FunctionalCategories & Capabilities

Capture / Extraction Input from email, scan, EDI, and Fax Auto-image cleanup, categorization Automated OCR and Header / Line Item Extraction Default Template with Ability to Create addtl Templates

Matching, GL Coding Duplicate Invoice, PO/Vendor check, Line Item Calculation Exception Queue Processing Automated PO line item matching, 3 way matching Ability to assign GL Codes during capture or workflow

Integration Table Based Query of ERP data (vendor, PO, GL) Automated Voucher Creation Contextual Viewing of AP documents from ERP

Repository Configurable Dashboards, Crystal Report Integration Annotations / Threaded Comments History & Audit Trail Boolean, Full Text, & Faceted Search

Approval Rules-Based Approval Routing Serial, Parallel, Ad-Hoc Approval Flows E-Signature / DocuSign Integration Approval within Email

Notification Event-Based Notification Engine Configurable Alerts & Timers User-Based Delegation & Proxy

Security Role-Based Access & UI Controls Standard, Sensitive, Ad-Hoc Access Controls Integrated Records Compliance Controls

Compliance Auto-Assign Retention Policy Legal Holds / Audit Automated Disposition Workflow


Invoice Capture Process


Invoice Transfer to ERP, Voucher Creation

Invoice is sent to ERP system

Payment details sent to xIA (DCTM)


Layered Application Architecture

Layered Application Architecture


APSolution Screen

Shots


Ingestion Types

Vendors can email invoices to a monitored inbox for automatic batch creation.

Monitor selected directories for new invoice documents received via Fax.


Invoices Identified For Review


Easy comparison of Extracted Data

Extracted data is displayed below the field of the invoice form.


Vendor Data Population

Gray fields indicate data populated via lookup based on PO

White fields indicate data extracted directly from the invoice


Invoice Line Item Validation

Easily navigate through multi page invoices

Automatic extraction of line items across multiple page invoices.


PO Matching

Validation of line item matching against PO data.


Duplicate Invoices

Automatic identification of duplicate invoices.

Configurable reject reasons are used to appropriately route rejected invoices to the correct queue.


Error Queue

Select appropriate action for the rejected invoice such as Delete or Rescan.

Forms can be customized by template and / or queue to ensure only relevant data is displayed to processor.


Foreign Invoices

Identification and conversion of foreign currency.


Non-PO Invoice

Header Level or Line Item G/L Coding.

Available GL Account information synced from database.


Landing Page

Filterable Tasks In flight statistics


Landing Page Continued

Approval Bottleneck Insight Ability to research payment


Invoice Task

Tabulated Information In line viewer


Assign GL Coding

Coding Integrity enforceable via summation against invoice Filtered selection of GL Entries and validation of actual selection


Supporting Documentation

Drag and drop Document versioning annotations, etc.


Invoice History

Time based audit of events Stores events and performers


Real time approver selection Manual override available

Approval Selection


Email Invoice from System

Ability to email out to 3rd parties System stores the event in history


Valuable Invoice information is pulled out into email Link to lightweight approval application

Approval Email


Lightweight app provides similar xCP look and feel

Information necessary to approval invoice is viewable

Email Approval Servlet


Send to Buyer Able to un-match, short pay, etc.

3 Way Match Issue Resolution


Invoices stored by final state, chronologically Invoice History is maintained in perpetuity

Browse


Collapsible Search Terms Ability to save search results to Excel

Search


Track count and average amount of invoices by Vendor or Status

Reporting


Deep dive into a given invoice’s history and length of time spent on each step

Reporting Continued


Example ERP Integration

47

Select Related Content link


Example ERP Integration (cont.)

48

The Related Content frame will show at the bottom of the page

Click on the document icon to view scanned documents


Example ERP Integration (cont.)

49

The Related Content frame is replaced with the View Scanned Documents page. Click the link to display the associated file in Documentum.


Four Benefits of a Digitized & Automated AP System

1. Cost Reduction: Significantly reduce the human processing effort and related costs by automating the

extraction and validation of digitized AP data elements.

2. Revenue Enhancement: Optimize your cash position by managing early pay discounts and avoid late payments. Use

automated 3-way matching (invoice, PO, shipping) and specialized exception queues for issue resolution that optimize cash flow and minimize labor costs.

3. Risk Reduction: Secure your financial data so it is visible to the right people at the right time so they can take

action. Provide full audit tracking to prevent fraud and use tightly integrated records management for automated retention and disposition.

4. Improved Visibility: Allow AP staff, Finance, business users, and vendors to have real-time access to status,

dashboards, and ad-hoc reporting.

50


John [email protected]

415-845-9305

Contact

www.Flatironssolutions.com



4 Benefits of a Digitized and Automated AP System

Technology

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