TIS in the Finance Department
Finance Challenges
 Cashflow management
– DSO v DPO
– Visibility of information
– Manage accruals
 Resource management
– Staff turnover
– Risk, training cost, consistency
 Vendor and Exception management
– Vendor education – PO reference
– Invoice duplication
– Out-of-tolerance transactions
 Invoice approval
– No control, delays process
 Compliance
– Process audit, Management information
Accounts Payable Sub-Processes
Source: BearingPoint 2007
Accounts Payable Sub-Processes
66%
Where TIS can help
Source: BearingPoint 2007
Vendor Analysis
How the process works – Step One
Volume Report
Audit
Digital Mailroom
Post Receipt
Scanning
Document Classification
Invoices
Cheques
Remittance
Rejection Letters
Fax Receipt
Email Receipt
How the process works – Step Two
Volume Report
Statistical
Reporting
Audit
Audit
Digital Mailroom
Data Extraction
Post Receipt
Invoice Reader
Scanning
Freeform OCR
Document Classification
Engine Tuning
Invoices
PO / Non PO
Cheques
Remittance
Header, Footer & Line item
Rejection Letters
Data Correction
Fax Receipt
Self Learning
Email Receipt
Multiple Languages
ERP System
How the process works – Step Three
Volume Report
Statistical
Reporting
Financial
Reporting
Audit
Audit
Audit
Digital Mailroom
Data Extraction
Customer Rules
Validation
Post Receipt
Invoice Reader
Vendor Validation
Scanning
Freeform OCR
Units
Document Classification
Engine Tuning
Pricing
PO / Non PO
Multi Currency/VAT
Header, Footer & Line item
Duplicate Invoice Check
Rejection Letters
Data Correction
2/3/4 way match
Fax Receipt
Self Learning
Email Receipt
Multiple Languages
Invoices
Cheques
Remittance
ERP System
How the process works - Step Four
Volume Report
Statistical
Reporting
Financial
Reporting
Work in Progress
Reporting
Audit
Audit
Audit
Audit
Digital Mailroom
Data Extraction
Customer Rules
Validation
Workflow
Post Receipt
Invoice Reader
Vendor Validation
Exception Management
Scanning
Freeform OCR
Units
Approval Processing
Document Classification
Engine Tuning
Pricing
Discrepancy
PO / Non PO
Multi Currency/VAT
Resolution
Header, Footer & Line item
Duplicate Invoice Check
Vendor Management
Rejection Letters
Data Correction
2/3/4 way match
Multi Currency/VAT
Fax Receipt
Self Learning
Email Receipt
Multiple Languages
Invoices
Cheques
Remittance
Resource Analysis
ERP System
Solution Summary
Early visibility of transactional data
Cashflow
System will scale in volume
and applications
• Accounts Receivable
• Customer Services
• HR
• others…
a) Operational
Flexibility
Improve
Business
Outcome
Risk
Identifies duplicate
invoices and fraud
Cost
Efficiency
• Maximise AP resource
• Creates efficient exception
and rejection handling
• Reduces training
b) Business
• Assists
vendor education
• Capitalise on early payment discounts
• Vendor rationalisation
Compliance
Full audit of process
Questions
HOW INVOICE READER WORKS
Solution Overview
Management
Information
Paper
EDI
Invoice Reader
solution
Customer
Rules
Email
Throughput
Processed
Data and
Images
Fax
Management Information
Work in Progress
Financial Reports
ERP
Master Data
System Tuning
Exception
Management
Financial Reports
Approval
SAP GUI
SLA Statistics
Archive Link
Secure Web
Access
Provides “Fully Featured” Web
based access for remote
workers
Solution Overview
Management
Information
Paper
EDI
Invoice Reader
solution
Customer
Rules
Email
Throughput
Processed
Data and
Images
Fax
Management Information
Work in Progress
Financial Reports
ERP
Master Data
System Tuning
Exception
Management
Financial Reports
Approval
ERP GUI
SLA Statistics
Secure Web
Access
Image Repository
ERP
Provides “Fully Featured” Web
based access for remote
workers
Scanners and Image Quality
Kodak i1420
Kodak i660
Read the Invoice
 Optical Character Recognition
 Engine Comparison Algorithms
 Field Level Engine Definitions
 Dates
 Amounts
 etc...
Engine 1
25***8
Engine 2
2*5378
Engine 3
253478
Engine 4
2*34*8
Engine 5
25***8
Virtual Engine
Safe: All engines must return the same
Result
2****8
result.
Normal: Only engines that returned a result
are counted.
Majority: This is a simple majority vote.
Order: First engine determines the result
25**78
253478
255378
Find the Invoice Data – Generic Invoices
 Freeform (Logic) Rule Sets
Edit Masks
@@######## or
RegEx ^(43|45)\d{8}$
 Identifying Field Candidates
–
–
–
–
–
–
–
–
–
Keywords
Logical rules
Expressions
Masks
Validations
Graphical rules
Tables
Groups
Different languages
Keyword(s)
Field Groups
Validations
Net + VAT = Total Amount
Find the Invoice Data – Specific Supplier
 Rule Sets for Top Suppliers
20% of all Invoices
 Validation against ERP data
 Specific data formats
Edit Masks
Keyword(s)
Find the Invoice Data – Learning
 Learn Fields that are not
accurately recognised
 Production Learning
– Data characteristics are learned
during manual data entry
Validation Against ERP
 ERP Database Search
–
–
–
–
Validation against ERP data
Supplier identification
Purchase Order identification
Line-Item validation against
open orders
Exception Management
 Validate Exceptions
against master data
and logical invoice
rules
 OCR “on the fly” for
easy capture of text
 Automatic
Validations against
business rules
 Remote Exception
Management
Management Information
Dynamic Controller
• Real time process management
• Prioritise specific vendors
• Promote business data
Statistical Analyser
• Helps identify and educate
non-compliant vendors
Invoice Reader Financial Reporting
 Vendor, PO, Non-PO, Invoice Number, Date,
Nett, Tax, Gross
– Earlier visibility of invoice data
– Centralised resource reference
 Benefits
–
–
–
–
–
–
Early visibility – manage cashflow effectively
Vendor education (identify non-PO culprits)
Early payment discounts
Spend analysis and vendor rationalisation
Identify payment duplication
Highlight potentially fraudulent invoice attempts
Invoice Monitor for Process Control
 Displays the status of invoices, incl. discounts, escalations
 Transparency of the process during and after the invoice processing
 Access to the workflow history, which can be archived after the process as PDF
 Dynamic reporting via the selection of invoices in the invoice monitor (can be saved as templates)
 Integrated SAP-rights for the user access
Factual Verification of Invoices
• Automatic identification of Factual Verification (based on email address etc.)
• Coding templates can be saved
• Electronic accounting stamp for cost centre, GL account, notes etc.
• Access to SAP documents
Invoice Approval via Web or SAP GUI
•Automatic identification and routing to relevant approver(s)
•Access via WEB or SAP GUI
•Approval on line-item level
•Automatic posting after all approvers have confirmed