Value of Contract Matching

Monday, February 11th , 2013

Danielson SamuelSoftware SpecialistRosemont, IL, Office

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Contract Matching – What Is It?

• Basware Contract Matching (CM) is an add-on to Basware Invoice Processing (IP).

• It AUTOMATES the processing of recurring, periodic or contract-based invoices.

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Contract Data

- Contract is an agreement between the company and a supplier for a specific duration of time

- Each invoice is matched with the contract based on the Contract number, which is unique to that supplier.

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Contract Matching Product Overview

• Matching Administrator: – Windows based tool that maintains the overall system configurations and

settings – Licensed administrator users can pre-define and manage invoices

• Contract Matching Client: – An approver uses this Web-based tool used to view, approve, deny and track all related tasks and details.

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What can it automate?

Recurring or periodic invoices

• Scheduled Based • Rent• Lawn Maintenance • Utilities

• Budget Based • Services • Outsourced employees • Consulting fees

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Types of Contract Related Invoices Schedule vs. Budget-based

• Schedule Based Recurring Invoices:

- With schedule based contracts a timetable and amount for expected invoices is set.

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Types of Contract Related Invoices Schedule vs. Budget-based

• Budget Based Recurring Invoices: –Based on total expected amount in defined timeframe (month, quarter, year).

–Possible to define max number of expected invoices and max $ per invoice.

–Invoices will be automatically matched until the budget amount or max number of invoices is reached.

Tolerance- Allow for Variances

Technical

• Contract categories define matching rules for specific contracts

• E.g. Invoice total must be within 10% of expected amount

• E.g. Invoice date must be within 7 days of expected date

• All contracts must be assigned a contract category

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Approving A Contract

• One or more approvers can be assigned to the contract–Each approver will have to approve the contract via the Contract Matching Client prior to it being enabled for matching

- Contracts created by administrators are automatically approved.

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Ease of maintenance through automatic tracking and notification

We can set up alerts to notify individuals for various events

– Contract expiration

– Missed expected invoices

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Other Automation Functionalities

• Send Informative Flow of the Matched Invoice or Add to Personal Archive

• Automatic flow possible for unsuccessful matches

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Defining default posting

A default posting can be defined on the contract in order to automatically code an invoice.

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Automation of schedule or budget-based invoice

• On successful match…

– Posting is copied from contract to invoice

– Invoice history is maintained

– Invoice is automatically routed to ready for transfer to payment

– Invoice can be automatically sent to informative flow in Invoice Processing (IP)

• On discrepancy…– Posting is still copied from contract to invoice

– Invoice is automatically routed to configured staff for corrective action

- Invoice history is maintained.

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Why Choose Basware Contract Matching• Seamless integration with Basware Invoice Processing• Cost savings – Automate routine tasks• Process efficiency improvements• Approvers have more time to spend on value adding tasks• Automation reduces time consuming manual steps and reduces the risk of errors• Control and Compliance• Executes purchase policy all the way to payment• Presents full audit trail from purchase requisition creation to invoice payment

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