accounts payable best practices: to automate or not
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Accounts Payable Best
Practices: To Automate or
Not
Agenda
Perception vs. Reality
Best-in-Class Steps to Success
Electronic Invoicing / OCR
Removing Touch Points
COR360 Demo
ACCOUNTS PAYABLE:
PERCEPTION VS. REALITY
Perception vs. Reality
Perception:
– Transactional
– Back-office
– Cost center
Reality:
– Department that controls the flow of money outside of
the organization
– A key business process that impacts an organization’s
cash flow and bottom line
But…
How can your Accounts Payable team focus on
the more strategic picture if they are focused on:
Tracking down lost invoices
Resolving supplier disputes
Fixing errors from manual data entry
Spending countless hours resolving exceptions
Inefficiencies of Paper-based
Processes Plague AP Operations
High processing cost
Poor visibility of in-process invoices
Too many errors and exceptions to resolve
Inability to effectively manage cash flow
BEST-IN-CLASS STEPS
TO SUCCESS
How does your AP performance
compare?
Best-in-Class
• 4.1 days to process an invoice from receipt through approval
• $3.34 average cost to process an invoice • 90% capture rate of early payment discounts
Industry Average
• 6.1 days to process an invoice
• $6.29 average cost to process an invoice
• 47% capture rate of early payment discounts
Laggards
• 16.3 days to process an invoice
• $16.67 average cost to process an invoice
• 18% capture rate of early payment discounts
Source: Aberdeen Group 2012
Best-in-Class Enterprises are More
Likely to:
Invest in AP automation
Centralize invoice management processes
Fully integrate AP automation with ERP or financial
solution
Measure and benchmark performance on a
monthly or more frequent basis
With AP Automation
You Can:
Reduce time, errors, and costs associated with
paper-based invoice processing
Simplify and accelerate review and approval
processes
Get complete visibility into invoice status from
origination to payment
Move from transaction processing to transaction
analysis
Transition from paper-based processes
to more effective automated workflow can
best be achieved through a series of
progressive steps rather than a “Big Bang”
initiative.
Different stages of AP Automation
Source: Paystream Advisors
Studies Show that Organizations
that Automate AP Experience…
Source: Aberdeen Group
25%
improvement
in labor
productivity
90-95%
reduction
in paperwork
Elimination of
lost invoices,
late payments
Improved
transparency
and visibility
*Based on results of companies utilizing full technology solution
REDUCING PAPER WITH
ELECTRONIC INVOICING
What is Electronic Invoicing?
Using a third party to perform scan and capture can help AP
departments to be paperless and 100% electronic
Fax
• Digital from creation
• Issued, received, and
processed electronically
Automated Scan and Capture
Intelligent
Scanning
Data
Extraction Data
Validation
AP
Workflow
Scan and Prep
Document sorting
Document classification
•Invoice
•Backup
•Expense report
•Junk mail
Data Capture
Invoice: 12345
Date: 12/20/2010
Amount: $8,532.00
Vendor: Verizon
Attention: 1101
PO #: 98765
Quality Assurance
• Validate
discrepancies
• Clean data so you
do not have to
Smart Routing
• Route to approvers
• Route for matching
• Automated
exception handling
Good vs. Best
In-house Outsourced
Investment in required
equipment No investment in equipment
Maintenance costs No maintenance costs
Interruptions if equipment
breaks
No equipment interruptions,
SLAs
Training required No training required
AP manages paper, not tasks;
why manage technology when
you are trying to manage AP?
NO PAPER TO MANAGE!
Scan & Capture
REMOVING TOUCH POINTS
WITH WORKFLOW
AUTOMATION
Why Remove Touch Points in AP?
Removing touch points allows AP to:
– Reduce processing errors and avoid mistakes that lead to
incorrect PO pricing and duplicate or late payments
– Simplify, standardize, and centralize processes; support
cross-functional departments in achieving cohesiveness
– Ensure restricted documents are only viewed by authorized
parties
ZeroTouch Invoice Processing ensures you will never have
touch a paper invoice again!
Not Every Invoice Needs Your
Attention
– SmartRouting uses rules to automatically route invoices
for coding/approval
– Automated delegation of authority approval checking
eliminates manual verification
– An exception handling queue can be used to notify users
of exception invoices and reasons for the exception
– Automatic reminder e-mails are triggered when an invoice
is not approved in a timely manner
Automated invoice workflow tools enable you to prioritize
only that need your attention!
Straight Through Processing
Overcome barriers to automated three-way matching
Process Automation Checklist
Invoice Virtualization – Scanning on the front end
– Optical Character Recognition (OCR) technology can
automate the data capture process
– Electronic invoicing
– Outsourcing scan and data capture processes to an Invoice
Virtualization Center
Workflow and Matching – Approval-based invoices
– Automated delegation of authority
– Automated three way matching of PO-based invoices
Removing Touch Points – SmartRouting
– Straight Through Processing
ABOUT CORCENTRIC
PO Requisition
Electronic Invoice Network
Invoice OCR Capture & Extraction
Approval Workflow
Invoice Matching
ERP Integration
Payment & Remittance Mgmt
Cloud-based AP automation
solutions
Corcentric is a leading provider of
financial process automation
solutions, specializing in Accounts
Payable automation.
Corcentric compliments existing
systems, while providing cutting-
edge workflow efficiencies
Corcentric helps you transform
your AP from a cost center to a
strategic asset
About Corcentric
COR360 PRODUCT DEMO
PO
Requisitions
Approval
Workflow
Automated
Invoice
Matching
Straight
Through
Processing
Dashboard
Reporting
Document
Archive
Platform
Convert any invoice format into
electronic data at the
Invoice Virtualization Center.
AP / ERP System
Send and receive invoices with
direct integration through the
Corcentric supplier network.
Intelligent
Scanning
OCR Extract Data
Validation
AP Workflow
Location
Scanning Online
Indexing
Virtualization Options
Invoicing Methods
Scan/Upload
E-invoices
Mail E-Mail
Web Form
Fax
Approval-based Workflow
Approved Invoice / AP
Review
Electronic
Interface
AP System
First Level Approval
Higher Level Approval
Invoice Notification
Smartrouting
Purchase Order Requestor
Attention Name or Department
Vendor Based
Invoice Amounts
Balance Due: $992.53
Purchase
Order
Three-way Matching
No Human
Intervention
Straight
Through
Processing
To see a live demo of COR360, visit corcentric.com or call 703.962.9474
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