ideas to streamline and improve your accounts payable process chicago asug 0706

8/9/2019 Ideas to Streamline and Improve Your Accounts Payable Process Chicago ASUG 0706

1/40

Illinois Chicago Chapter

Ideas to Streamline andImprove your AccountsPayable Process

Mike Narducci President

NEXTEP Technology Solutions

www.NEXTEP.us


2/40

About Nextep Technology Solutions

SAP Consulting Company specializing in recommendingthe best third party products for all areas of SAP

SAP Recruiting and Staff Augmentation

Headquartered in St. Louis Missouri, Serving NorthAmerica and the World through our partners.

Focus is on enhancing the SAP Experience whileimproving the Total Cost of Ownership

www.NEXTEP.us


3/40

About NeXtep Technology Solutions


4/40

Learning Points

Look at the typical Accounts Payable process

Examine the Top 10 Reasons why time is wasted,according to Gartner Group

Simple and straight-forward methods to improve yourAccounts Payable processes

Look at todays technologies that can dramatically reducethe time and costs associated with the Accounts PayableInvoice processing

Fits into every companys Compliance strategy


5/40

Return on Investment

Save Time and Money !

Process documents, faster, with significantly less costs and greatercontrol

The process improvements and technologies discussed have proven inproject after project to have a dramatic Return On Investment.

A process that previously took 8-10 hours to do in a manual,

paper-based process now takes us only a few minutes. Based onour labor costs, the Solution is expected to save us severalhundreds of thousands of dollars annually.Ms. Bonnie Miller, CIO, Ramsey, Krug, Farrell & Lensing, Inc.


6/40

A/P is Prime for Process Improvement

Typically a Time consuming, Labor intensive process

Out-of-site, out-of-mind

Not gli tzy but vital to the Business

Only visible when its not working

De-centralized processes may lack controls

Fear of change

A huge Cost Center for most organizations

The greater the Invoice volume the greater the ROI

In the past, technologies were not available at a reasonable costand were difficult to implement Not any more.


7/40

The Typical A/P Process

Manual key-entry Labor intensive

Paper-based process

High Volume

Every vendors document looks different

Complex/lengthy approval process

Difficult to manage


8/40

Top 10 reasons why time is wasted

1. Documents are hard to f ind

2. Document content is hard to manipulate and reuse3. Documents are hard to update

4. Documents are hard to share

5. Document content is hard to publish consistently

6. Document creation is an ad hoc process

7. Document review is an ad hoc process

8. Importance of document content is not obvious

9. Paper-based distribution and storage is costly

10. Paper-based archiving is expensive and inefficient for

retrieval

Source: Gartner Group


9/40

Business Documents - The problem

The Current

Situation isthe most

expensive

TIMELabor Intensive Retrieval,

One check-out per time

HIGH COST

Storage room,Office Material, Furniture,

Cost of copier/printer

MISPLACED

Lost Documents,

Labor Intensive Storage,

Slow Retrieval


10/40

Ways to Improve your A/P Process

Integrate procurement card payments seamlessly with SAP PurchaseOrders

Make your vendors pay themselvesEDIHave your vendors e-mail invoices and use technology to postUtilize bolt-ons to make transactional work easier

Implement an Invoice Imaging, Information Capture & WorkflowsolutionEnable shared services and/or global sourcing of part of your back-

off ice A/P processes


11/40


Integrate procurement card payments seamlessly with SAP Purchase

Orders

Now we can truly integrate procurement cards with SAP PurchaseOrder functionality.

No checks are cut creating greater cost savings.

Typically no invoices are needed, pay directly as items post to card.Fully leverage total spend for each vendor whether as a p-card

purchase or as part of a P.O.


12/40

Import detailed

transaction data

Begins with your

SAP System

Adds payment card

profile structure

Extends native SAP

controls & workflows

Flexible reporting

provides visibility

XiBuy High Level Flow


13/40


Make your vendors pay themselves

Vendor input invoices through your portal most likely

It can be very costly to implement

Security is an issue

Vendor buy-in is a huge issue

You can lose control of the process

Ultimately, a possible solution for just some of your vendors


14/40


EDI

Need support staff and continuous monitor ing

Especially useful when it s crit ical to maximize float

Useful for a small number of high volume vendors


15/40


Have your vendors e-mail invoices and use technology to Post

High volume vendors e-mail invoices from static addresses

Invoice attachments are identif ied and optically read

Invoices are Posted into their A/P system

Same can be done using SAP and off-the-shelf bolt-ons for e-

document delivery and archiving

Another solution for high volume vendors, but easier to implementand maintain.


16/40


Utilize bolt-ons to make transactional work easier

Input your FI invoices (FB60s, etc.) into Excel spreadsheets and upload toSAP (useful for other FI transactions & Budgets as well)

Speed the input process by 80%

If you use the leading spreadsheet uploader, all master data is verified prior

to upload, ensuring an error-free processNo-brainer for most organizations, inexpensive with a huge return on

investment

Implement in no t ime, with lit tle or no training its Excel

Highly recommended


17/40

Ways to Improve your A/P ProcessImplement an Invoice Imaging, Information Capture & Workflow

solution

The Biggest Bang for the Buck !

The technology is real, straight-forward to implement and inexpensive

More modern SAP Archiving solut ions are now available at costs much lowerthan the old players

Handles every Invoice that comes in the door through a combination ofLayout and Content Classification and Data Extraction

Truly enables organizations to automate the A/P invoice process

Shift to Information Capturing vs. just Image Capturing

Get a huge ROI now and further leverage for your SAP Archiving project thatyou ll need to do eventually anyway

Utilize throughout the organization, imaging opportunit ies are everywhere

Recommended for EVERY organization regardless of invoice volume


18/40


Enable shared services and/or global sourcing of part of your back-

off ice A/P processes

Its a fact of life

If you can centralize and streamline youre A/P process, youll beable to source those processes efficiently for even greater savings

A/P invoice processing is a prime business process for globalsourcing


19/40

The 3rd Party Imaging Decision ProcessWho can not just capture images but can capture information for

even greater cost and time savings

Must be a fully SAP Certified SolutionKnowledge and Experience

Scalable Architecture

Performance and Throughput are key

Standard Product vs. Custom Integration ProjectFast User acceptance - Usability

Short implementation time to Go Live

Modular Product Line, Concurrent User License - Low Cost

Ease of ImplementationSimple Knowledge Transfer Methodology

Part-time Administration

Service and Support


20/40

The ROI Benefits: Security and administration of electronic documents represent up to 100%savings in comparison to paper documents and microfiche

Reduced operating costs Increased securi ty for document retention

Efficient and complete audit trails Improved filing according to regulatory and legal requirements Improved efficiency from workflow processesUp to 30% time savings for approval workflow based processes Take advantage of Prompt Payment Terms 80% to 90% efficiency savings from Document Capture and automated

Classification and Data Extraction

Increased transaction volume per employee, 70 75% Integration of documents into business processes = 20% increased

efficiency

Increased customer satisfaction resulting from faster customer inquiries

Shorter access times to business documents 80% time savings for document search and access


21/40

Differences in SolutionsTime

Complexity

Data

Archiv ing

Document

Management

Systems

Workflow

Enterprise Content Management (ECM)

Link Management

Groupware

Content Management

Portals

Classification


22/40

Process Improvement Opportunities

Automatic linking of paper &

electronic documents to existing SAP

transactions or Master Records

Invoice

Purchase

Order

DeliveryNote

HRRecords

Paper &Electronic

Docs


23/40

Assigning Then Storing Late

No change in business processes!

Conventional work with Paper Documents

Posting in SAP R/3 with collection of Barcode,

Scanning and Linking


24/40

Storing for Subsequent Entry Early

ScanningSAP InboxElectronic Processing

W O R K F L O W


25/40

Image Capturing vs. Information Capturing

We have to change from image capturing to information

capturing

A new kind of software with more intellectual abilities

Even for smaller volumes of documents

80% of the labor cost in a DMS system are for indexing the documents


26/40

Capture

Classification

Extraction

Digital Mailroom

Scan

Layout-Classification

Forms Processing Content - Classification

ICR / OCR Freeform- Data Extraction

ECM, DMS, ERP WorkFlow SAPDMS

Inbound Documents


27/40

Digital Mailroom Solution

Standard Scan Process

1

5

4

3

2

Retrieval Process

Automatic

Classification

&

Extraction

Document Types

15.06.20049002

15.06.20049001

Invoice dateInvoice No

Exceptions

(Dealt w/ Manually)

Digital Mailroom

Paper

Electronic

Subject:Type:

To:From:

DateCorrespond

Renewal:Contract

Type:

Vendor:Customer:

Contract

Date

Contract #


28/40

The Digital MailroomInbox

HR

Invoice

Sonstige

Legal Affairs

Classification

Forms and

unstructured

Information

Workflow

+ Index-Data

15.06.2009002

15.06.2009001

Invoice

date

Invoice

No

RKK02.05.20

MAS13.04.20

employeedate

Pam Prue546732A

Paul Palm1002

contractNo


29/40

The Digital Mailroom

Intelligent

Extraction

Forms and

unstructured

Information

Workflow

+ Index Data

15.06.2009002

15.06.2009001

Invoice

date

Invoice

No

RKK02.05.20

MAS13.04.20

employeedate

Pam Prue546732A

Paul Palm1002

contractNo

Inbox

HR

Invoice

Sonstige

Legal Affairs

Business rules for information deliveryBusiness rules for information delivery


30/40

Complex Business Processes


31/40

Streamlining the A/P Process

SAP Business Workflow Increase Accounts Payable production

Reduce costs to run A/P department Scanning of Inbound documents at earliest convenience

Identifying document type Invoice with or without verification

Invoice with or without PO Inbound purchase orders

Return receipt

Signature on delivery note, etc.

Scanning into inbox of processing groupWorkflow inbox

Highest Benefits in terms of cost cutting and streamlining ofbusiness processes


32/40

Requirements and Needs Analysis Strategy Assess and review current system status

Objectives and benefits:

Outline objectives for Imaging, Document ManagementOutline major business drivers

Identify key benefits (reduce costs, increase productivity, etc.)

Involve users early in the process

Address IT Management/C-Level requirements and concerns

Analysis and review:

Perform Document Management / Imaging Analysis in variousdepartments (A/P, A/R, HR, Legal, etc)

Get expert validation of f indings or perform analysis (depends oninternal knowledge)

Determine access methods (SAPGUI, non-SAP users, Web users)

Understand organizational Compliance requirements


33/40

Basel II

Capital assessment and reporting

standards for global banking

Sarbanes-Oxley

Fiscal accountability for all

public companies

U.S. PATRIOT Act

Customer documentation

requirements in order to

know your customerDoD 5015.2

and UK PRO

Federal standardsof records management

NASD 3110

Written policies and

procedures for review ofcorrespondence

with the public

SEC Rules

17a-3 & 17a-4

All records related to

securities transactions to be

maintained for 3 years

Gramm-Leach Bliley Act

(GLBA)

Privacy of financial

information

Health Insurance Portability

Accountabil ity Act (HIPAA)

Right to carry insurance

between jobs; privacy

of patient

information

Compliance

Corporate Compliance


34/40

Scalable Architecture

Boston

Workstations

Scanner

Archive

Dallas

Paris

TokyoNew York

Data Center

Ohio

Data Center

Hundreds of concurrent users across a # of branch offices High document volumes (Paper, word docs, e-mail, fax, etc) and docs are local

Archiving, Retrieval, and also check in/out with versioning

Fail-Over locations, data centers with global visibility

Final worldwide implementation incl. Hundreds to Thousands of users in # of locations

Integration into existing applications

Workstations

Scanner

Archive

Workstations

Scanner

Archive

Workstations

Scanner

Archive


35/40

Distributed Documents with Automatic Fail-Over

Boston

Doc

Server

Cluster

Broker

Dallas Tokyo

ParisNew York

Ohio

DB

Replication/

Fail-over

Docs

Doc

Server

Cluster

Broker

Docs

Cluster

Broker

Doc

Server Docs

Cluster

Broker

Doc

Server

Docs

DBDocs

Access


36/40

Selecting a Scanner

Single-sided Duplex

Pages Per Minute rating

Flat bed vs. Sheet Fed

Paper Feed Capacity Paper size

Color

Reliabil ity MTBF

Serviceability

Cost


37/40

Feed them (almost) Anything...

N umber Com pany Code 1 Code 2 IO-number C ount ry Num ber

-------------------------------------------------------------------------------------------------------

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698

123456 KODAK NV 3456767 786767 888 98798 87-87878878-7698


38/40

Compliance Oriented Revision-ProofArchival Storage

Standard Plug & Play Devices


39/40

'90 '92

1X2X

4X

.65 GB1.3 GB

2.6 GB

'94 '96 '98

Very low Cost per Gigabyte

Optical Storage Libraries

01

8X

5.2 GB

16X

9.1 GB

30 +/- GB

04


40/40

Thank you !Mike Narducci

President

Nextep Technology Solutions

[email protected]

www.nextep.us

636.458.1107