You are on page 1of 21

SAP Invoice Management

by Open Text
Invoice reconciliation done efficiently
Cathy Daw
SAP
Paul Unsworth
Open Text
18
th
November 2009
1. The Need to Optimize the Cycle
2. Value Proposition of SAP Invoice Management by Open Text
2.1 Strategic Arguments
2.2 Functions and Features
3. Achieving Results with SAP
4. Summary
Agenda
SAP 2008 / Page 2
Does this scenario look familiar?
CEO
Our cost of capital and
material costs are too high.
CFO
My cost of accounts payables is
not state-of-the-art and neither is
our cost of goods purchased. Financial Analyst
Use of cash discounts is
low, cost of capital is rising.
Supplier
Doing business with that
company is difficult as they
are unable to tell when they
pay their invoices.
Accounting
We cannot say which invoices we have received
across different departments and we have no
control over the time-to-payment.
Purchaser
We could lower the cost of goods
if we could make systematic use
of cash discounts.
Accounts Payables
We spend more than 50% of our
time responding to calls and
emails from suppliers requesting
state of invoice or complaining
about late payment.
Is this organization prepared to:
Increase process efficiency
Reduce finance operating costs
Make use of cash discounts
SAP 2008 / Page 3
Poor vendor relations
Excessive cost per invoice
Difficulty in preparing
accruals
Fragmented stand-alone
systems
No workflow or data
management
No integration with
General Ledger (GL) or
Accounts Receivable
(AR) systems
Inadequate AP
process control
(compliance risk)
Limited visibility of liabilities
No insight into process
bottlenecks
Fragmented and
inefficient
Paper-based and labor-
intensive
Lack of standardization
Typical barriers to efficient
Accounts Payable (AP) operations
Result:
High Cost of
Finance Operations
Bad Vendor Relations
SAP 2008 / Page 4
Result:
Efficient Operations
Reduced Costs
Improved Vendor
Relations
Integrated systems and
processes
Global visibility into
liabilities
Consistent payment behavior
across countries and
organizations
Systematic, collaborative
approach to collections and
disputes
Standardization and
greater automation
Streamline manual, paper-
based processes
Workflows that minimize
reconciliation time
What it takes to optimize
the AP invoicing process
SAP 2008 / Page 5
Invoicing Strategies/options within SAP
XI/XML
EDI
Marketplaces
e.g. Zanzibar
Self billing
SAP
Supplier
Portal
Paper invoices prepared and transformed
SAP invoice management Solution from Open Text
Number of Suppliers
N
u
m
b
e
r

o
f

I
n
v
o
i
c
e
s
Agenda
1. The Need to Optimize the Cycle
2. Value Proposition of SAP Invoice Management by Open Text
2.1 Strategic Arguments
2.2 Functions and Features
3. Achieving Results with SAP
4. Summary
SAP 2008 / Page 7
Differentiators of SAP Invoice Management by
Open Text
The only one-stop-shop solution from your landscape vendor:
Harmonized look-and-feel familiar to your SAP users, thereby reducing training efforts
Reduced cost of operation proven SAP technology, instead of technology clutter
No integration risk this not available from any other vendor
No maintenance risk one source of customer support, service packs and upgrades
Reduced vendor obsolescence risk SAPs proven track record reduces risk of
vendor obsolescence
Grows along your business needs:
Supports multiple back ends (SAP, non-SAP) achieving invoice transparency across the
corporation
Supports multiple languages and in-country rules and regulations regarding invoice handling
Scalable to the highest invoice volumes
Future proof will work with future SAP Enhancement Packs and ERP releases
SAP 2008 / Page 8
What your organization gains from SAP Invoice
Management by Open Text
Simplify and optimize the entire invoice management process:
Create workforce efficiencies through an automated, streamlined process with or without the
added benefits of Shared Services
Improve working capital management through better visibility to cash requirements
Cut costs through automated data extraction with the OCR option and process automation
and control
Reduce costly manual errors
Optimize cash discount utilization
Improve business processes while reducing compliance risks:
Enable more accurate financial reporting through complete visibility
Segregate duties through workflow control invoice processor and all process constituents
Monitor across all steps of the invoice process comprehensively
Provide complete audit trail from receipt through settlement
SAP 2008 / Page 9
What your Finance Shared Services Organization
gains from SAP Invoice Management by Open Text
SAP 2008 / Page 10
Cost
Cost of manual data entry virtually eliminated
Costly focus and follow-up on numerous
status calls and complaints from suppliers
avoided
Need to install more instances when
adding countries avoided through localization
Risk
One place to monitor all invoices
Platform for central service delivery, enabling selective process harmonization
Transparent routing of invoices to process constituents across the corporation
Data entry errors and the associated risk and cost drastically reduced
Quality
Processing capacity grows with volume, without need to grow headcount proportionally
Consistent service provision adhering to KPIs and SLAs
Streamline accounts payable operations
with OCR
Less labor cost for manual keying
Built-in knowledge base with over 4,000 different invoice types from
over 20 countries, provides exceptionally high automation rates
Combining OCR with human data verification minimizes data
defects
Automated procedures extract more business data than possible
with manual methods
Any volume of invoices can be processed in the desired time using
a recognition server cluster
Invoices without OCR errors are automatically forwarded to invoice
processing
Compliance checks are based on data extracted from invoices
More accurate data allows more business rules to be implemented
SAP 2008 / Page 11
Costs
Data Quality
Efficiency
Compliance
Benefits you gain throughout the entire
invoice management process
Familiar SAP Look and Feel
Full Access to Familiar SAP Function
and Graphics
One-Click Access
User Friendly GUI/Screens/Dialog
Boxes Make It Easy
Accurate, Efficient Processing
SAP 2008 / Page 12
Standard SAP tools are included for sort, filter, print, email, export
Complete history of all processed invoices
Summary overview of invoices, including the number of and value of
invoices
Audit history with comments
At-a-glance reporting
Approval history at-a-glance
Approve or reject data
Prior approvals
Locate necessary supporting documentation, including invoice image,
purchase order, goods receipt, SAP invoice, comments and complete
history
Process data
Analyze data
Comment on data
Validate data
Role-based routing ensures accurate team review, resolution and approval
Automated data capture for fast and accurate data entry without human effort
SAP 2008 / Page 13
SAP Invoice Management Platform
SAP ArchiveLink
Livelink
Windows,
Java & Web
Viewer
Livelink ECM for SAP Solutions
F
I
S
D
P
L
M
.
.
.
F
o
r
m
s
M
a
n
a
g
m
e
n
t
D
e
s
k
t
o
p
L
i
n
k
B
a
t
c
h

I
n
p
u
t

/

C
O
L
D
Livelink Enterprise
Archive Server
High Security
High Availability
D
e
s
k
t
o
p

S
c
a
n
E
n
t
e
r
p
r
i
s
e
S
c
a
n
E
x
c
h
n
a
g
e
L
i
n
k
N
o
t
e
s
L
i
n
k
@
SAP
Invoice
Mgt
O
C
R
SAP 2007 / Page 14
IM Functionality Overview
SAP Invoice Management
Archive Server
SAP ERP
Document
Processing
Invoice Approval
Exception Handling
SAP IM Analytics
OCR
Scan
Electronic
SAP Exceptions
Condition PO-Related Non-PO-Related
Invalid Data Format X X
Invalid PO Number X --
Invalid Vendor Number X X
Invalid Unit-of-Measure (UOM) X --
Invalid Currency X X
Invalid Requester -- X
ReScan Required X --
Unable to Determine Company Code -- X
Suspected Duplicate Invoice / CM X X
Approval Required X X
Vendor Audit Required X X
Vendor Maintenance Required X X
Vendor Mismatch X --
Non-PO Credit Memo -- X
PO is Not Released X --
Unable to Match PO Lines X --
Service Entry Required X --
Currency Mismatch X --
UOM Mismatch X --
Freight on Invoice X --
Tax Audit Required X X
Unable to Auto-Park Invoice / CM X X
Price Discrepancy X --
Quantity Discrepancy X --
Unable to Auto-Post Invoice / CM X X
SAP Invoice Management
Automated paper-to-post invoice management
SAP 2008 / Page 16
Comment Trigger workflows Post invoices
Invoice
Recognition
Collaboration &
Monitoring
Invoice
Completion
Invoice
Verification
OCR Option for
SAP Invoice
Management ERP (FI/AP)
Payment
SAP Invoice Management
Prfung und
Vervollstndigung
UMWANDLUNG
VERIFY AND
COMPLETE
EXCEPTION
HANDLING
APPROVE
Automated reconciliation and posting
TRANSFORM PAY
OCR
Validation
Inbox
(incoming
mail / fax)
PREPARE
Open Text
Archiving for
SAPSolutions*
* or another SAP ArchiveLink-certified repository, not part of Open Text Vendor Invoice Management
Scanning
Archiving
1. The need to optimize the cycle
2. Value proposition of SAP invoice management by open text
3. Achieving results with SAP
4. Summary
Agenda
SAP 2008 / Page 17
Customer return on investment
SAP 2008 / Page 18
Typical customer realizes >50% cost-per invoice decrease and return-on-investment
in <12 months through:
25%-50% FTE Headcount redeployment
(20-50%) Lower cost per invoice reconciled
(<75%) Lower cost of errors
Reduce Duplicate invoice processing
Improved vendor relations
50-75% less Vendor hotline traffic
Less follow-up effort On vendor status requests and complaints
Realize Increased cash discounts
Lowe cost Through better pricing and terms
Tighter controls
Reduce Non-PO invoices
Reduce Maverick buying
Support SOX compliance
** Numbers based on aggregated market insight
Agenda
1. The need to optimize the cycle
2. Value proposition of SAP invoice management by open text
3. Achieving results with SAP
4. Summary
SAP 2008 / Page 19
The bottom line
The ability to control and anticipate
Comprehensive overview of all invoices across the corporation
Increased control of time-to-payment
Allows for better cash usage based on comprehensive insight
State-of-the-art shared services delivery platform
SAP architecture enables leveraging economies-of-scale
SAP automation improves efficiency in administrative processes
Invoice automation powers financial transformation
Automates labor-intensive invoice reception and reconciliation
Frees line operations from finance administration work
SAP 2008 / Page 20
Please use the chat window for questions
Thank you!
SAP 2008 / Page 21