Presentation is loading. Please wait.

Presentation is loading. Please wait.

eSettlements “ Vendors like PeopleSoft have delivered what CFOs and Treasurers value most, a collaborative settlement solution that increases productivity.

Similar presentations


Presentation on theme: "eSettlements “ Vendors like PeopleSoft have delivered what CFOs and Treasurers value most, a collaborative settlement solution that increases productivity."— Presentation transcript:

1

2 eSettlements “ Vendors like PeopleSoft have delivered what CFOs and Treasurers value most, a collaborative settlement solution that increases productivity and improves cash flow. ” Michael Killen,The Killen Group Frederic Portal Product Strategy Manager Balaji Ramakrisnan Product Strategy Manager

3 The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

4 Agenda Procure to Pay Trends PeopleSoft eSettlements Concept Demo Conclusion / Customer Case

5 Market Challenges Process paper-based Reconcile invoices and resolve disputes quickly Supplier phone calls prevent your staff from doing their jobs? All invoices paid on time Take advantage of supplier discounts and maximization cash Supplier dispute ever shut down your business?

6 Inefficient Processes …only 17% of the settlement cycle time is spent on approving invoices for payment. The remaining 83% is spent on mundane functions … keying-in paper invoice data into AP systems and disputing discrepancies. Aberdeen Group Paper is Still King

7 Cost Risk Tied to a Non-Automated Invoice System Improvement AreaPerformance Impact Invoice Processing CostReduced 30-60% Processing Cycle TimeReduced 65% Accounts Payable LaborReduced 25-40% On-time Payment PercentageImproved from 15% to 59% On-Time Payments Earning DiscountsIncreased up to 500% Supplier participation70-90% on average (in categories addressed) Invoice Received in Electronic Format55% to 90% Payment Settled in Electronic FormatIncrease 65% Source: Aberdeen Group, June 2005

8 Streamline Payables Processing Sources: Gartner Inc., Invoicing and Payments: The Payer Value Proposition and Oracle Corp. $2.0 Billion company with 100,000 invoices / year Wastes $1.5 Million over 3 years Electronic transactions cost 60% less Manual 8.50 / invoice Electronic 3.44 / invoice The Paper Premium 0 $1,000,000 $500,000 $1,500,000 $2,500,000 $2,000,000 1 Year 2 Years 3 Years Cumulative Cost Difference

9 Total Cost for an Invoice Direct Cost Postage Paper Clerk time Indirect Cost Printing cost Manual mistakes Account Reconciliation Compliance No utilization of discount term Invoice Total Cost Source: AberdeenGroup, June 2004

10 Reconciliation POs / Delivery notices / invoices: 50 to 70% of AP staff time (often manual) More than 50% of calls received are payment related Dispute management is time consuming and costly Lost payment discounts: 1,5 to 2% of invoice gross amount Settlement - Buyer’s pains

11 Payments Landscape 296B payments (est.) Source: McKinsey, 2005 In aggregate, it’s still a paper payments world B payments

12 Business drivers Improving IR & P Influence

13 Agenda Procure to Pay Trends PeopleSoft eSettlements Concept Demo Conclusion / Customer Case

14 The Flow Supplier Cash Management Accounts Payable Bank ESettlement XML

15 Introducing eSettlements eSettlements offers buyers a global electronic invoice presentment and payment solution: Electronic Invoices capture and presentment Matching and non-PO invoices scenario Online Approvals – header and/or line level Dispute Resolution (online or offline) Electronic Payments Notifications (central setup page) Complete Web-invoicing functionality

16 eSettlements Invoices acquisition and process E-invoices EDI / XML Dispute resolution 2/3/4 way Matching Approval Payment Optical Character recognition Paper invoices Manual keyed in keyed in 3rd party SupplierWeb-invoice And also Self-billing (SBI) and Evaluated Receipt Settlement (ERS) eSettlements

17 Supports Business Service Provider (BSP) Product Overview / Business Flow eSettlements Models eSettlements Hub eSettlements eSettlements Hub, BSP Payment Buyer Direct eSettlements Each AP Business Unit can become a “Buyer” Each vendor can become a “Supplier” First, use the “Enable Buyer Direct” process to automatically register Buyers and Suppliers from existing data. Add any missing data elements like address and electronic banking information. First, use the “Enable Buyer Direct” process to automatically register Buyers and Suppliers from existing data. Add any missing data elements like address and electronic banking information.

18 Step 1 – Supplier logs in the Supplier Self-Service eSettlements Best Practice - Web-based Invoicing Step 2 – Supplier selects information in restricted list of values, copy from his PO lines (or his receipts) Step 3 – Once the web-invoice is completed, the Supplier submits it to Buyer review Step 4 – Buyer reviews the invoice and authorize to be registered XML Step 5 – The supplier can Print a copy of the invoice For his own records Or request an XML file for ERP integration Step 6 - The invoice follows the buyer approval process for payment.

19 Supplier eSettlements Buyer Invoice Creation Matching Invoice Approval Select for Payment Approval Paid B2BCollaborative FrameworkHTML Dispute Cleared Buyer Bank EIPP: A COLLABORATIVE PROCESS FOR BUYERS AND SUPPLIER Product Overview / Business Flow

20 Payments Systems Today Legacy System 1 ERP System Bank System Bank A Bank B Legacy System 2 Payment Report Bank Internet Terminal HTTP/S FTP/S AS2 Encryption Tool Payment Report ACH Encryption Dispatch FTP Integration Platform Communication Platform Transformation Source Data Source Data Source Data Bank System Bank Internet Terminal Bank System Bank A Bank System Bank B Legacy System 1 Source Data ERP System Source Data Legacy System 2 Source Data Financial Gateway : Payment Hub/SSC

21 PAYMENT FACTORY - Straight-through processing of all payments and receipts - Centralized payment platform across the Corporation - A true Hub (Hook to 3rd Party systems, other ERP…) - Payment lifecycle – event tracking, notification, inquiry PAYMENT FACTORY - Straight-through processing of all payments and receipts - Centralized payment platform across the Corporation - A true Hub (Hook to 3rd Party systems, other ERP…) - Payment lifecycle – event tracking, notification, inquiry Financial Gateway Out of the box integration Payment Factory Central Format Repository Central Control Transport & Security Bank Connectivity CENTRAL FORMAT REPOSITORY - Delivered and extensible layout catalog - Major payment formats built to industry specification - Ability to configure easily additional formats CENTRAL FORMAT REPOSITORY - Delivered and extensible layout catalog - Major payment formats built to industry specification - Ability to configure easily additional formats BANK CONNECTIVITY - Bank Format Support - Electronic Banking web service - extend enterprise application reach for the “last mile” of integration BANK CONNECTIVITY - Bank Format Support - Electronic Banking web service - extend enterprise application reach for the “last mile” of integration OUT OF THE BOX INTEGRATION - AP, AR, eS, Treasury, Expenses - E to E1 - Extendable Infrastructure for easy integration with any 3rd Party OUT OF THE BOX INTEGRATION - AP, AR, eS, Treasury, Expenses - E to E1 - Extendable Infrastructure for easy integration with any 3rd Party CENTRAL CONTROL - Payment life cycle Event tracking and notification In-line payment analytics - Minimize exception based processing - Error validation framework CENTRAL CONTROL - Payment life cycle Event tracking and notification In-line payment analytics - Minimize exception based processing - Error validation framework TRANSPORATION & SECURITY - Real-time, seamless, - Secure communication with Financial Institutions or 3rd party exchanges - Direct communication capabilities (HTTP, HTTPs, FTP, FTPs, AS2) - Industry standard encrypt/decrypt technologies (SMIME, PGP, PKCS#7) TRANSPORATION & SECURITY - Real-time, seamless, - Secure communication with Financial Institutions or 3rd party exchanges - Direct communication capabilities (HTTP, HTTPs, FTP, FTPs, AS2) - Industry standard encrypt/decrypt technologies (SMIME, PGP, PKCS#7) Transforming Payments Into a Strategic Weapon

22 eSettlements Highlights Ease of Use Designed for both Buyers and Suppliers at all levels – from novice to expert Invoice Cycle for at-a-glance invoice status and history Drill down into detailed transaction data

23 eSettlements Highlights Collaborative Tools to Improve Supplier Relations Supplier access to transaction information through browser notifications for exceptions, disputes, payments, remittance information Integration with Instant Messengers (Yahoo, AOL, IBM Lotus Sametime) for dispute resolution

24 eSettlements Highlights Extend access to Operational Users View invoice and payment status without having to learn the entire system Route invoices to authorized approvers throughout the buying organization Send only the relevant lines of an invoice to approvers

25 Suplier Home Page

26 Supplier Self-Service Supplier can maintain their business information : Business ID / Tax ID’s Address Payment information Factoring information Address Payment/bank infoSelf-invoice entry Supplier info self-maintenance

27 Seller Inquiries Receivables Aging Balance – in real time

28 Supplier Tools DSO Calculation

29 Results –Lower Costs Increases efficiencies in handling paper invoices (data entry, disputes, approvals and processing). Increases efficiencies in preparing payments, reviewing suspect items, and reconciliation. Reduces fees for paper disbursement services. Savings partially offset by electronic payment fees. More economical (online) data searching, analysis and dispute management. Better visibility of cash flow

30 Automate Your Payables Process eSettlements eSettlements offers buyers a global electronic invoice presentment and payment solution: Electronic Invoices Matching (Configurable matching rules) Digital Signature Online Approvals Dispute Resolution Enable duplicate vendor setup checking Notifications

31 Automate Your Payables Process eSettlements eSettlements offers best practice solutions to automate your Payables process: Electronic Invoices (Eliminate paper invoice (use ERS, web-invoicing, XML/EDI) Supplier Self-Service Online Approvals Online Dispute Resolution Electronic Payment Notifications Use Excel Voucher upload Take advantage of payment discounts Matching (Configurable matching rules) Enable duplicate vendor setup checking ERS: Evaluated Receipt Settlements

32 Automate Your Payables Process Enable Supplier Self-Service eSettlements fully integrates with your PeopleSoft Payables : Requires activation, not implementation Payables setup and data is automatically pulled New roles / workflow / security are available Buyer and Supplier Self-Service facilitates enabling of new users Web-invoicing allows your supplier to key-in invoices effortlessly

33 No visibility after the invoice is sent to buyer, no information about incoming payment No warning / alert mechanism when an issue arises (dispute, matching difference, wrong bank information) Need to pick up phone to ask “Where’s my check ?” Dispute management is time consuming and costly No information about the remittance information when a payment in made (partial, multi-PO’s, credit note applied) Settlement - Supplier’s pains

34 Invoice creation Invoices can be created online or received electronically using XML/EDI connectors Supplier can key-in the invoice by copying PO or receipts lines

35 Agenda Procure to Pay Trends PeopleSoft eSettlements Concept Demo Conclusion / Customer Case

36 Configuration of eSettlement Creation of the Buyer Each AP Business Unit can become a “Buyer”

37 Configuration of eSettlement Creation of the Buyer You might have to add the address

38 Configuration of eSettlement Creation of the Buyer Header Level Approval Line Level Approval

39 Configuration of eSettlement Creation of the Buyer Line Level Approval can be done based on chartfields, item, item category

40 Configuration of eSettlement Chartfield access to the Supplier You can empower your supplier to enter your invoice distribution

41 Configuration of eSettlement Creation of the Supplier You can pull a Supplier created in AP you just activate it as a Supplier in eSettlement

42 Configuration of eSettlement Creation of the Supplier Each vendor can become a “Supplier

43 Configuration of eSettlement The Buyer creates the Agreement Next, create an Agreement between each Buyer and Supplier, with payment terms and processing options.

44 Configuration of eSettlement The Supplier reviews and accepts Agreement

45 Configuration of eSettlement The Buyer accepts the Supplier terms Now you are ready to automate your payables process

46 Web-invoicing Supplier log in Key features Different Supplier roles delivered with workflows All suppliers pages secured on one or several vendor ID’s attached to the Supplier

47 Web-invoicing Supplier selects web-invoicing Key features Other menus available from this role : Review invoices and payment Extract invoices Supplier information review

48 Web-invoicing « Create invoice » Key features View invoices before buyer approves it Correct or Delete Print a pro-forma Invoice ! Reduces paper processing Fewer errors XML, EDI, or Supplier Self-Service

49 Web-invoicing Copy from his PO lines or Receipts Key features Security, Supplier selects information in restricted list of values Automatically detects tax situation Allow to key-in the invoice number of the supplier PO/receipts displayed are strictly secured Non-PO invoices supported !! Invoices can be created online or received electronically using XML/EDI connectors

50 Web-invoicing Selection form the PO lines Key features System pulls only open PO’s for this supplier Multiple search criteria enabled Selection by header or detailed lines Drill down to the detailed PO

51 Web-invoicing Submittion to buyer or requester Key features Supplier can add comments on lines Supplier can select the appropriate tax codes Save for later or submit to buyer Selected a chartfield to be keyed-in by the supplier !

52 Buyer reviews the invoice Buyer log in Buyer review invoices page

53 Buyer reviews the invoice Key features Receive invoices electronically or self-service entry online No more keying, just validation Buyer Releasing the invoice Buyer run voucher build

54 Buyer run Matching Invoice life cycle

55 Buyer approve the invoice Match exception

56 Exception Processing Matching engine compares orders with invoices, receipts

57 Notifications East Bay Travel invoice #243 from the Concord location dated: to buyer Massachusetts Operations has been flagged with a match exception. This invoice will not be paid until the Buyer resolves this situation. Please contact Massachusetts Operations and reference Voucher ID: Notification of matching exceptions can be sent to the buyer and the Supplier

58 Online Approvals Routed using pre- defined approval levels and amounts Buyer users are alerted by notification when there are new invoices to approve\

59 Online Approvals Worklist for approving invoices individually or all at once

60 Online Approvals Select and approve payments

61 Invoice Life Cycle Visual display of invoice status from creation to payment

62 Online Dispute Resolution Invoice #243 payment schedule 1 dated 2007/02/22 has been resolved with the following comments: Received goods, releasing for payment Voucher will now be processed. Notification of disputes and resolution sent to Supplier

63 Online Dispute Resolution Track conversations, resolve disputes, correct invoices

64 Financial Gateway Review and Select Payments Payments Awaiting Response Payments by Bank Payments by Method Payment in Error Payments on Hold by Source

65 Financial Gateway Payments Confirmation and Verification

66 Financial Gateway Review and Select Payments

67 Online Dispute Resolution Notification of disputes and resolution sent to Supplier

68 Why eSettlements ? eSettlements fully integrates your PS Payables : Payables setup and data automatically pulled New roles / workflow / security delivered Real time update of your invoices status Activation, not implementation Self-service features enable new users easily Web-invoicing allows your supplier to key-in invoices effortlessly Keep it simple, but complete !

69 Features & Benefits Reduces paper processing Fewer errors Handles a range of technology capabilities Reduces response time through automation Improves communication Minimizes resources needed to process disputes. Better cycle time – more prompt-pay discounts, fewer penalties Electronic Invoices XML Supplier Self-Service Notifications Match Exceptions Disputes Online Dispute Resolution

70 Features & Benefits Online Approvals Workflow, rules-based Invoice Payment Electronic Payments Schedule disbursements Review/modify scheduled payments Enables timely decisions. Automates business rules. Lowers the incidence of lost or delayed invoices and payments. Improves cash management. May reduce borrowing expenses or increase investment income. Improves forecasting ability.

71 Features & Benefits Buyer and Supplier Collaboration Buyer and Supplier Agreements Notifications, alerts Visual Workflow Online Status Inquiries Invoice Payment DSO Calculator Aging Balances Reports Buyer Benefits Reduces phone calls, faxes, letters to and from suppliers Reduces supplier maintenance Negotiate discounts Supplier Benefits Complete visibility into transaction status Notified automatically of invoice errors, disputes Increases control over receivables, reduce DSO.

72 Multiple payment streams High costs of paper processing Lack of Financial Visibility Compliance and audit trail Multi bank, multi format Centralized payment factory Electronic Straight Through Processing Real-time payment flow Real-time STP with complete visibility Full audit trail with error handling Non-proprietary, format independent payment processing hub Web-services based offering IssueSolution Provided Via Financial Gateway Financial Gateway

73 A top US-Based Insurance Co Background 300,000 invoices annually from 40,000 vendors 75% invoices electronic = 300 paper invoices per day One centralized AP department, 25 AP employees plus outsourced services Challenges Medium-size vendors are source of most paper invoices and create heavy call volume into AP Transact in EDI with large vendors and p-card with small vendors. Solution Phase I eSettlements roll-out to 14 medium-size vendors selected based on call volume Scheduled go live in November Will roll out to all vendors based on successful completion of Phase I. PeopleSoft Enterprise Products eSettlements FMS, EPM Benefits Will minimize paper invoices and payables data entry Vendor self-service feature will reduce call volume into AP Will allow for headcount reduction, both with employees as well as contractors.

74 A top 3 worldwide retailer Background 39 millions invoices annually from 60,000 vendors 20 countries Challenges 65%-70% of AP staff allocated on dispute management 35%-30% of AP staff on invoice acquisition and matching Decrease invoice processing cost by 50% Solution Phase I – rollout of eSettlements in pilot countries Phase II – open the web vendor and web invoicing Roll-out to all countries after successful deployment in phase I countries PeopleSoft Enterprise Products eSettlements FMS Benefits Will minimize paper invoices and payables data entry Vendor self-service feature will reduce call volume into AP Looking to deploy web- invoicing (ERS & SBI) for mid- size and small vendors SBI: Self Billing Invoice

75 A Q &

76 Additional Resources For More Information about our Products For More Information about Education For More Information about Support For Customer Connection Information: Oracle Product Documentation: ications.htmlhttp://www.oracle.com/technology/documentation/appl ications.html

77 For More Information or eSettlements

78 Thank you

79


Download ppt "eSettlements “ Vendors like PeopleSoft have delivered what CFOs and Treasurers value most, a collaborative settlement solution that increases productivity."

Similar presentations


Ads by Google