TIS in the Finance Department

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 Finance Challenges

Accounts Payable Sub-Processes Source: BearingPoint 2007

Accounts Payable Sub-Processes Source: BearingPoint % Where TIS can help

Vendor Analysis Mainly Non PO PO & Blanket Order EDI EDI + Paper Paper PURCHASING METHOD TRANSACTION TYPE PO & Non PO

Audit How the process works – Step One Post Receipt Scanning Document Classification Invoices Cheques Remittance Rejection Letters Fax Receipt Receipt Post Receipt Scanning Document Classification Invoices Cheques Remittance Rejection Letters Fax Receipt Receipt Digital Mailroom Volume Report

Audit How the process works – Step Two Post Receipt Scanning Document Classification Invoices Cheques Remittance Rejection Letters Fax Receipt Receipt Post Receipt Scanning Document Classification Invoices Cheques Remittance Rejection Letters Fax Receipt Receipt Digital Mailroom Invoice Reader Freeform OCR Engine Tuning PO / Non PO Header, Footer & Line item Data Correction Self Learning Multiple Languages Invoice Reader Freeform OCR Engine Tuning PO / Non PO Header, Footer & Line item Data Correction Self Learning Multiple Languages Data Extraction ERP System Statistical Reporting Volume Report

Audit How the process works – Step Three Post Receipt Scanning Document Classification Invoices Cheques Remittance Rejection Letters Fax Receipt Receipt Post Receipt Scanning Document Classification Invoices Cheques Remittance Rejection Letters Fax Receipt Receipt Digital Mailroom Invoice Reader Freeform OCR Engine Tuning PO / Non PO Header, Footer & Line item Data Correction Self Learning Multiple Languages Invoice Reader Freeform OCR Engine Tuning PO / Non PO Header, Footer & Line item Data Correction Self Learning Multiple Languages Data Extraction Vendor Validation Units Pricing Multi Currency/VAT Duplicate Invoice Check 2/3/4 way match Vendor Validation Units Pricing Multi Currency/VAT Duplicate Invoice Check 2/3/4 way match Customer Rules Validation Customer Rules Validation ERP System Statistical Reporting Volume Report Financial Reporting

Audit How the process works - Step Four Post Receipt Scanning Document Classification Invoices Cheques Remittance Rejection Letters Fax Receipt Receipt Post Receipt Scanning Document Classification Invoices Cheques Remittance Rejection Letters Fax Receipt Receipt Digital Mailroom Invoice Reader Freeform OCR Engine Tuning PO / Non PO Header, Footer & Line item Data Correction Self Learning Multiple Languages Invoice Reader Freeform OCR Engine Tuning PO / Non PO Header, Footer & Line item Data Correction Self Learning Multiple Languages Data Extraction Vendor Validation Units Pricing Multi Currency/VAT Duplicate Invoice Check 2/3/4 way match Vendor Validation Units Pricing Multi Currency/VAT Duplicate Invoice Check 2/3/4 way match Customer Rules Validation Customer Rules Validation Exception Management Approval Processing Discrepancy Resolution Vendor Management Multi Currency/VAT Resource Analysis Exception Management Approval Processing Discrepancy Resolution Vendor Management Multi Currency/VAT Resource Analysis Workflow ERP System Statistical Reporting Volume Report Financial Reporting Work in Progress Reporting

Improve Business Outcome Cashflow Cost Efficiency ComplianceRiskFlexibility System will scale in volume and applications Accounts Receivable Customer Services HR others… Solution Summary Early visibility of transactional data a) Operational Maximise AP resource Creates efficient exception and rejection handling Reduces training b) Business Assists vendor education Capitalise on early payment discounts Vendor rationalisation Full audit of process Identifies duplicate invoices and fraud

Questions

HOW INVOICE READER WORKS

Solution Overview Provides Fully Featured Web based access for remote workers Approval Invoice Reader solution Processed Data and Images ERP Master Data Secure Web Access Customer Rules Exception Management Archive Link SAP GUI Management Information Throughput System Tuning Financial Reports Management Information Work in Progress Financial Reports SLA Statistics Paper EDI Fax

ERP GUI ERP Solution Overview Provides Fully Featured Web based access for remote workers Approval Invoice Reader solution Processed Data and Images ERP Master Data Secure Web Access Customer Rules Exception Management Image Repository Management Information Throughput System Tuning Financial Reports Management Information Work in Progress Financial Reports SLA Statistics Paper EDI Fax

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 125***8 Engine 22*5378 Engine Engine 42*34*8 Engine 525***8 Virtual EngineResult Safe: All engines must return the same result. 2****8 Normal: Only engines that returned a result are counted. 25**78 Majority: This is a simple majority vote Order: First engine determines the result

Find the Invoice Data – Generic Invoices Freeform (Logic) Rule Sets Identifying Field Candidates –Keywords –Logical rules –Expressions –Masks –Validations –Graphical rules –Tables –Groups –Different languages Keyword(s) Field Groups Validations Net + VAT = Total Amount Edit Masks or RegEx ^(43|45)\d{8}$

Find the Invoice Data – Specific Supplier Rule Sets for Top Suppliers Validation against ERP data Specific data formats Keyword(s) Edit Masks 20% of all Invoices

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

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 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

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 Invoice Monitor for Process Control

Automatic identification of Factual Verification (based on address etc.) Coding templates can be saved Electronic accounting stamp for cost centre, GL account, notes etc. Access to SAP documents Factual Verification of Invoices

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 Invoice Approval via Web or SAP GUI