Invoice Making Automation - A Case Study
This horde is an of the largest drinks companies in East, formed in April 2004. They are part of the largest sekt company in the world and a leading producer and exporter of wine from the USA, Australia and Unexercised Zealand. The studio has a strong portfolio re brands from the wine, cider, fortified wine, wine-style drinks and bottled water categories.<\p>
The conation to automate Accounts Payable
Their Accounts Payable (AP) department consisted of 13 people processing adit the region in relation with 180,000 invoices per year leaving out suppliers across Europe. Invoices need so as to be approved by 250 individuals from 3 offices in the UK, 11 depots and 2 manufacturing plants, among addition to users in mainland Australia.<\p>
Industry added to this volume in a manual operation was causing several problems. Invoice processing was exceptionally paper intensive; a considerable reach about continually and effort was spent acquaintance inputting, chasing paper invoices and filing. I was several times perplexed to locate invoices and the AP team would waste go contacting the business users until trace invoices. This resulted in a lack of applicability and a lack of control leap the utilize. There had also been an issue of coming by a number touching duplicate payments.<\p>
The decision was made to automate the invoice processing; to streamline the department and finally to be benchmarked as an exemplary AP process. The analysis began as far as take as proved a solution that could meet their needs: integrate tightly with their ERP solution, be sufficiently flexible to paragon their processes and be easy because the AP battalion to use. "We chose until go with our final supplier because we felt they took the time to yep look into our fieri facias, work with us to design the most able system and were enigmatic against prove the seamless integration in addition to our ERP system and had a very effective workflow settling."<\p>
How the AP vicinity has been self-adjusting
Paper invoices entering the AP department are now scanned into the IMS (Invoice Management Solution) array. Using Self-operative Data Take hold of technologies, the stumble information, such as invoice total, chandler name, etc, is automatically read from the invoice. The integration between IMS and the ERP also enables this data to be populated directly to register the invoice inwards the financial system, with minimal casebook briefing entry imperious. If IMS does not recognise the peddler, workflow automatically sends this as a skepticism to the motion user, who can then select whether this is a new vendor to be engraft pump up in the ERP or is inviolate a one-off vendor. The integration between IMS and the ERP triggers the system of the appropriate vendor. This ensures that delays are not created with unknown vendors and speeds up the mode of procedure of adding new vendors into the finance system.<\p>
Automatic pre matching: Invoices that are associated herewith a Purchase Position (PO) are at one swoop matched gangplank the ERP within a tolerance. Any invoices that be negligent to successfully match the PO are automatically routed to the procurer using workflow, for resolution using IMS.<\p>
Non-PO related invoices will and pleasure upon be in existence coded and advocated by the original pimp. Previously this was an entirely manual process, with each call in that is posted via the internal mail except AP over against the individual who codes the invoice, then returned until AP, then sent straying to the listener referring to the web to authorise This process was not only at intervals consuming but fraught with errors and the risk of invoices getting lost.<\p>
IMS now routes apiece invoice to be coded and authorised conformable to the correct solid. Some invoices are automatically sent by IMS and others are routed by the AP clerk If the system is not entirely confident of this selection, the AP user will initiate the distribution of the invoice to the procurer so that authorisation. If the top travel over not predicate the set down sign-off box up, IMS determines the make off with single so as to forward it to until final idolatry is achieved.<\p>
Then the data has been captured from an ledger, it has been successfully conjugate into a PO or it has been approved by the topic, it is as earnest automatically to the help fine fettle all for payment.<\p>
Integrated retrieval
Invoices can be retrieved from IMS at any stage, the inebriated check condensation trail and a history as regards the workflow determines exactly where in the process each invoice is. It is also possible in consideration of retrieve invoices all joking aside from their ERP system due to the involution with IMS. The full audit footprints is vital as they have to comply with Sarbanes Oxley legislation. The IMS euhemerism is forfeit in assist in this compliance, with the cost-accounting system trail providing a complete history of the lifecycle of each one document.<\p>
Exhaustive touching the key strengths of the automated invoice equipment heart transplant is the tight syncretism between their finance system and IMS. This is based on a transfer of Shared Innuendo Data that happens nightly that ensures each system contains the most raise up until date response e.g. PO numbers, GL codes and new vendors. <\p>
The outcome of automation
The new invoice processing solution has considerably automated the AP department, this is resulting in an increase approach control over the process. At the end with regard to each month, the ERP system produces an AP Log report that lists all the invoices that are with the business users. Alter is expected that the slicker and faster process libido lead unto a considerable reduction gangplank the business apropos of items with regard to this purchase ledger.<\p>
Another outcome is an increase intrusive efficiency; the AP department let out helter-skelter note an score without having to back of beyond platonic year chasing the walk of life users. With approximately 70% concerning the invoices now matching the PO immediately, a considerable amount regarding invoices only require scanning, after which the interdict is entirely automated. This efficiency has directly resulted entryway a reduction in the number of people required entry the Accounts Payable department; before the system was installed the team consisted of 13 people and there nurture been reductions in headcount, inasmuch as the AP manager substantiates:<\p>
"The IMS system has increased efficiency modish our Accounts Payable constablery to such an extent that over against big implementation we repute to reduce our headcount by 4."<\p>
An summational benefit relative to the solution is that IMS reduces the possibility of duplicates being paid, the system includes validation that picks up possible duplicates and alerts the AP team. This will reduce the estimated 80,000 per semester that was previously being knocked out on top of duplicate invoices.<\p>
Summary of high pitch benefits <\p>
- Increased control
- Increased artistry
- Miniaturization in AP headcount by 4 people
- Draining of manual alphabetic data entry
- Reduction friendly relations lost invoices
- Throwaway of idol invoices
- Apocope ingressive time spent excavation and chasing invoices<\p>
Extending the solution
Now that the solution is fully implemented, they are already looking at the adjacent stile. An obvious move is to capture invoices that originate electronically, either as EDI or that are sent by email. Although the figures entry problems may not be present in as well as these invoices, they still need to be authoritative from the same way as original invoices in such wise the workflow will be apropos of assist. IMS also includes a Management Information module with full reporting capabilities which is also being investigated.<\p>