Albert BuijzeDecember 2018

Mission PossibleAccounts Payable State of the Art Process

Agenda

• Introduction ASML• Principles• Current Process• Why, How, What• Digital World: Simplify, Transpose. Accelerate• Lessons learned

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Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

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New devices, new applications

Micro mirrors for beamers (TI)

Lab on a Chip (LOC) for counting red blood cells

On-Chip DNA amplification and detection (imec/Panasonic)

Wearable sensors(Holst Centre)

Textile integrated health patch

Simband with health monitoring (Samsung)

Cell sorter to detect metastization (imec)

Imaging drone to monitor crop growth and yield (imec)

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ASML makes the machines for making those chips

• Lithography is the critical tool for producing chips

• All of the world’s top chip makers are our customers

• 2017 sales: €9.1 bln

• More than 20,000 employees (FTE) worldwide

Virtual Close

More Than Technology

The virtual close is not just a matter of rolling out new technology. It requires a sustained, companywide effort to redesign our processes

World Class Finance

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Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

How to accelerate business growthFebruary 5, 2013

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2.0

Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

Scope

• Assignment : AP from Score Keeper to Business Partner• Transparent AP Process, Stable Controlled• Low Cost and Sustainable

• Annual Spend 2017• 6.8 billion in value• 525.000 invoices • 5.500 active suppliers World Wide

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Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

Validating Electronic Invoices on the Network

InvoiceERP

GST/VAT Compliance

PO & PO-Line Match

Buyer Match (non-PO)

UOM & SKU Change

Currency Match

Sub Total& Total Amount

PO-Line Change

Line & Total Consumption

Thresholds

Shipping & Tax Thresholds

InvoiceNumber

Bill To / Ship To

PO Number

Requestor(Non PO)

InvoiceDate

VAT / GSTIDs

AccountCoding

Workflow

Compliance

Suppliers

98% Touchless Processing

Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

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ASML Accounts Payableprepare for the Digital-First Worldrevolutions in technology, societal engagement, and enterprise operations will converge to change the way we all do business by the end of this decadeSimplify processes, Transform platforms, and Accelerate information delivery

Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

Current ProcessAccounts Payable is Posting Invoices

DHC Scan center

AFI Ctrl Box

ASML

Ariba Network

WORK

FLOW

SUPPLIERS

Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

Facts & Figures 2012 & 2018• Auto posting rate of invoices went up from 40 to 85%

• Total FTE reduction since 2010 is 20 till now, process and automation improvements

• 50% vendors enabled (invoice volume) on Ariba Network in two years • More PO’s, Better Spend Control. No maverick buying• Throughput time reduction from 22 days to 7 days on

average. Happy Flow was 10 minutes.• Processing cost reduction from 30 euro to 3 euro per

invoice

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Principles – Process – Digital World – Why, how, what – Financial Control – Lessons

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ASML Accounts Payable

Simplify processes, Transform platforms, and Accelerate information delivery

Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

Simplify• Understand P2P Chain• Respect the stakeholders in P2P process• Use Buckets

• Split Spend in digestible parts • Create Clear Processes per bucket• Automate

• Posting Invoices is easier through clear process and instructions (students instead of Flex)

• Vendor Master Data Management through MDG, (later combined with Ariba Network)

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Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

Procurement to Pay Chain17 December

2018

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BusinessDemand

Procurement

Vendor

Accounts Payable

Service Providers(In- & External)

Treasury

Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

Transform• From Manual Posting of received paper invoices to

• AFI Tool with logic and auto posting• Manual posting is boring and is not stable

• Paper invoices to PDF to scan center• Ariba Network for e-invoicing, plus rules• Students, incorrect posting rate did not change

• More Flexibility• Vendor Master Data Management through Ariba

Network in MDG, SAP

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Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

One Source of Truth (less IT, interfaces)

• AFI software• All invoice related events, from invoice date to

payment date, per invoice are registered in AFI• AFI is basis for reporting. Combined with BW and

Spotfire• This way issues can be monitored and improved

• Software Development by ASML AP and AFI and Ariba

• SAP, BW, Spotfire, daily automated reporting

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Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

Accelerate• Ariba Network, e-collaboration

• Prohibit incorrect invoices entering SAP• Fieldglass, better Flex Process

• Easy hiring, quality, stable process, self billing• Transparix, Freight solution, autoposting• EasyBuy development

• Contract buying and PO’s• Rent contract PO’s

• Less depending on IT services• SAP, HANA, Spotfire, on-line automated reporting

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Current ProcessAriba – AFI – SAP PO- Invoice Integration

Tibco

DHC Scan center

AFI Ctrl Box

AFI(enrich)

MIRO(book&match)

SAPInv. XML Inv. XML

Inv. XML (Push)

Inv. XML (Pull)

Inv & PO Approval

task

Inv. Appr. Idoc

Livelink

Existing PR & NPR Invoices

Task

ASML

POPO Appr Idoc

PO XML (Push)

TIFF

Ariba Network PO Idoc

PDF

Approved Ariba PO

Ariba P2O

Supplier

NPR PO’s

PR PO’s

PO (copy)

WORK

FLOW

Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

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SAP

To Be Process Ariba – SAP

PR & NPR Invoices

Ariba Network

Approved Ariba

PR-PO

SUPPLIER

NPR PO’sPR PO’s

ASML Ariba AddOn

Livelink / SAP xECM

SAP IM

Principles – Process – Why, how, what - Digital World – Financial Control – Lessons

Lessons Learned over 10 years

• You can only excel if you understand and work with the entire chain, in this case the P2P chain, P2P Process

• Pay Lots of Attention to Details• Never Trust your External IT service providers• Always ask for POC (Proof of Concept)• Be aware of the IT “JWGWJBS” syndrome• Internal awareness, need for change• Vendor Awareness• Software Development by ASML AP, AFI and Ariba • Involve Internal Control from Day 1

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