how one global company leverages ap automation to save ... · plan, procure, pay canon solution 17...

How One Global Company Leverages AP Automation

to Save Cost and Gain Control Bob Singh

Executive, Account Solutions Canon Information & Imaging Solutions

Sabrina Walsh

Financial Systems Analyst Canon U.S.A.

Bringing together Canon’s information management expertise and imaging technologies

Transforming organizations through

Digitization, Leading Technology,

and Experience.

Expertise in BOTH

Digital Imaging and

Business Process Automation.

Canon Information and Imaging Solutions

ACCOUNTS PAYABLE IN GLOBAL ENTERPRISES

The Most Common AP Challenges

1. Minimizing Errors: 47.1% 2. Lack of Visibility into invoices and payments: 45.4% 3. Difficulty handling, managing and finding invoices: 42.0%

Source: IOFM Whitepaper – “4 Reasons Organizations are Taking an End-to-End Approach to Accounts Payable Automation”, 2015, Sponsored by CIIS

Challenges of Complex, Global AP Operations

• Multiple locations

• Multiple business units and divisions

• Lots of vendors

• Slow approval processes

• International operations

– Multi-lingual, multi-currency invoices, shipping documents, freight, brokerage and customs charges, local tax regulations…

• Support for rapid business expansion

AP Complexity

7

Source: IOFM

AP Automation for Complex Processes and Fast Growth / 07-12-2016

No standardized process

Only 55% of businesses have standardized accounts payable processes across the enterprise

8

Source: IOFM

AP Automation for Complex Processes and Fast Growth / 07-12-2016

CASE STUDY– CANON USA

10

1937

Year Founded

$31B Revenue

191K Employees

Canon Americas

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Nearly $10B Revenue

Over 20 divisions and subsidiaries

supported by Shared Services Finance

Over 17K Employees

Canon’s Plan, Procure, Pay Challenges

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• Automation of Project Approval Process

• Automation of Invoice Payment Process

• Dashboard Reporting

• Use of Canon Software

Project Approval Invoice

Automation Oracle Integration

& Dashboard

Payables Challenges

-AP Payment Factory

-No control Over LONG payment cycles

-No Interaction with Vendors

-Shared Service expansion

-Process not timely

-Limited visibility to upcoming Projects

-Long invoice to payment cycle

-Shared Services expansion

-No control of payment timing

-Lost discount opportunities

-Paper processes for everything

-Confusion over delegations

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Accounts

Payable

Procurement

Product

Division

Project Challenges

-Projects not being approved at the right levels

-No visibility across the organization -Questions on what has been spent where -Multiple processes

-Limited visibility to upcoming Projects

-Lost discount opportunities

-Projects not approved properly

-No visibility to projects in the divisions -No single approval process

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Product

Division

Procurement

Budget

Division

Efficiency Priorities

Technology

Borderless Services

Increased

Standardization

1

3

2

Single ERP System

Shared Services

Efficient Spend Cycle

Efficiency Priority 1

Single ERP System Implementation

• Rationalize number of legacy applications

• Follow Global Template

• Parallel Ledgers (Statutory to U.S. GAAP)

• Allow for Shared Services across the organization

1

Plan, Procure, Pay Canon Solution

17

Unified project and procurement system for Canon providing:

Clear Project spend to budget

Clear

Cycle Times

Mobile solution

E-approvals

Cash Discounts

Innovation and delivery of

Canon Software business value

Canon’s Plan,

Procure, Pay

“Uberification”

Corporate Authorization

Standard

Optical Character Recognition (OCR)

Data Extraction & Business Rules

Invoice Header & Line Item Processing

Intelligent

Data

Capture

Plan, Procure, Pay

Project Information Gathering Tool; Templates

Automatic Approval (Business) Workflow

Enterprise Content Management

Allowing System Components to “Talk”

Business Logic & Processing

Dashboards - Visibility Into Projects & Metrics

Integration with

the organization’s

native

ERP system

Workflow

Management

Middleware

Capabilities:

Cash discounts

Dashboards One Process for

all Departments

Easier expense

control and

compliance

Expense control

and visibility

throughout the

process

Reduction in

Cycle Times Standard

Authorization

More efficient

workflow

Advantages of Plan, Procure, Pay

Efficiency Priority

Expand Shared Services

• Shift FTEs and Budgets to value-add activities

• Multifunction Business Services (IT, Finance, HR, Procurement)

• Automate where possible, increased standardization

2

Efficient Spend Cycle

• Standard Process

• Visibility and mobility

• Few clicks to buy, clear pricing, clear cycle times

Efficiency Priority

Transform Plan, Procure, Pay

into a High Value Process

3

Vendor Consolidation

• Consolidate vendors (every 3 vendors into 1)

• Double the number of invoices processed by each Accounts Payable FTE.

• Default new vendors to early payment discount program.

Efficiency Priority

Transform Plan, Procure, Pay

into a High Value Process

3

Project Expense Visibility

Identify commitments prior to spending

Quick Insight into where spending is

taking place

Clear Cycle Times

How many invoices

processed in a time

period

Search by supplier,

approver, AP processor

Clear Cycle Times

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Simplify Document Entry

Multifunction Device

System Change

• Integration with ERP system.

• Visibility into AP process and project-based planning

Process Improvement

• Reduce cycle time

• Ensure PO Compliance

• Auto-pay if PO and invoice match

• Standardized Process

Vendor Consolidation

• Preferred vendors for best terms and pricing

• Expand usage of POs

• Easier identification of vendor specialization

Results of AP Automation

Before After

11 days Project approval

8 days Requisition to invoice

5 days Project approval

5 days Requisition to invoice

AP AUTOMATION SOLUTION

Automated Process - Overview

Process Payments Receive, Scan, Extract

Service / Product Requestor

EIP

Verification User Interface

Data Extract

Data Verification

Create Voucher

Invoice Received

AP Analyst

Approval workflow

Workflow User

Interface

Supplier Invoice

Process Payments

AP Team

Start End

Notification Notification

Manage & Follow up

Available management reports • Workflow escalation process

if invoice is not approved timely

– Notification emails

– Manager escalations

– AP team escalation dashboard

– OCR Metrics

– Pending invoices

Purchase requisition workflow • This will be an approval chain, the

chain is determined based on Approval Limit configuration and the Organization configuration.

• For example if Amount = 300,000, PM, Manager, Director and EVP need to approved.

Invoice receipt – Capture from email inbox

• Capture of PDF and Excel invoices from e-mail. – Email fetcher can be

configured for several inboxes

– Email fetcher will allow vendors and others users to email invoices in PDF or Excel format

– Email fetcher will start the process, no one will need to print and scan the invoice

What data fields can be captured? • Capture & Validation of invoice

information as required. – Our soltuion can capture all of the fields required

by your requirements for example

– Determine PO or non-PO invoice.

– Determine if invoice requires approval

Field name IRIS Populate method Vendor Id Identified based on address match of the

vendor against the master data. Invoice Date

Extracted from Invoice based on the most recent date or as invoices are trained.

Invoice Number

Extracted from Invoice based on the label or as invoices are trained

Gross Amount

Extracted from Invoice.

PO Number Identified based on PO number of the vendor identified above.

Scan Date Prefill with Scan Date Legal entity name

Identified based on address match of the Org

Bank account

Based on vendor master data

Net Amount Extracted from invoice VAT amounts

Extracted from invoice

Line item details

Validated against purchase order

Invoice PO Matching • Identification of PO invoices

and matching with PO and receipts – Handling of matching to partial PO’s

for multi-line invoice and what occurs if PO doesn’t match invoice

– Method of accessing open PO’s (open line items on PO)

Invoice coding – Non PO invoices

• Ability for approver to change invoice coding

• Ability to code invoices with multiple account coding and allocate to multiple accounts

Approval process on mobile devices • Ability to view and approve invoices via multiple platforms such as

laptop, tablet or mobile

• Mobile functionality available while not on corporate network or VPN

Approval process • EIP Approvals workflow can be

configured to route approvals – Secure electronic approvals

– Ability for approver to add description/comment if desired

Available management reports • Workflow escalation process if

invoice is not approved timely

– Notification emails

– Manager escalations

– AP team escalation dashboard

– OCR Metrics

– Pending invoices

AP AUTOMATION EXPERTISE

Mobile Devices

A Single Platform for All Your Document-Intensive Processes

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CIIS Capabilities

1. Consulting

Deep understanding of AP

Expertise in ERP

2. Technology

Image Capture/Creation

Data Extraction

Middleware Platform

Content Management

3. Delivery

Customization

Implementation

Training/Change Management

CIIS Capabilities

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Thank you!

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