best practices for optimizing p2p with tungsten workflow

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Best Practices for Optimizing Procure-to-Pay with Tungsten Workflow Diann Ferguson Director of Business Development Tungsten Network

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Best Practices for Optimizing Procure-to-Pay

with

Tungsten Workflow

Diann FergusonDirector of Business DevelopmentTungsten Network

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

Today’s Agenda

• Discuss processing invoices for payment

• Consider PO invoice exceptions and associated impacts

• Examine Tungsten Workflow, its capabilities and how it fits in an end-to-end AP automation solution

• Summarize key advantages of Tungsten Workflow and what makes it unique

• Q&A

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

Different perspectives and their implications on AP3

CEO“Our cost of capital and material costs are too high.”

CFO“My cost of accounts payables is not state-of-the-art and I have poor visibility to key metrics.” Financial Analyst

“Use of cash discounts is

low, cost of capital is rising.”

Suppliers“Doing business with that company is difficult as they are unable to tell when they pay their invoices.”

Accounting“We cannot say which invoices we have received across different departments and we have no control over the time-to-payment.”

Purchaser“We could lower the cost of goods if we could make systematic use of cash discounts.”

Accounts Payables“We spend up to 50% of our time chasing paper and responding to calls and emails from suppliers requesting status of invoice or complaining about late payment.”

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

Paying received invoices – a simple task … Right?

• PO invoices are matched against POs (2-way) and goods receipts (3-way)

• Exceptions are handled to resolution

• Non-PO invoices receive GL coding or distribution

• 2-way PO and Non-PO invoices receive approvals

• Non-PO invoices receive financial authorization for payment

• Invoice transactions are posted to the ERP system for payment

• Period-end accruals are managed and posted for invoices received though not yet paid

• Reporting and KPI management takes place

• Invoices and associated histories are maintained for audit purposes

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

What does finance want from AP?

Accuracy of AP Making correct payments in accordance with contractual terms

Control over AP Optimizing working capital, payment timing and financing

Efficiency of AP Processing invoices faster; managing days payable outstanding

Cost of AP Expending fewer resources while maintaining performance

Information from AP Providing visibility into actual payments vs. contractual terms; improved reporting

Compliance Alignment with guidelines, regulations and/or legislation

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

The business impact of PO invoice exceptions

Source: Rooting out Invoice Exceptions:The Path to Straight-Through Processing

31% of PO invoices result in an exception

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

The manpower impact of PO invoice exceptions

Source: Rooting out Invoice Exceptions:The Path to Straight-Through Processing

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

Top-three causes of PO invoice exceptions

Source: Rooting out Invoice Exceptions:The Path to Straight-Through Processing

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

End to End Accounts Payable Process Flow

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

An invoice automation workflow solution to streamline AP processing

• Invoice automation workflowo PO invoice processing –

AutoMatch, Exception handling, Auto Posting

o Non-PO invoice processing – GL coding, Approval, Auto Posting

o Core Platform Integration – SAP, Oracle E-Business Suite and JD Edwards

• Reporting

Tungsten Workflow

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

What does Tungsten Workflow do?

• Workflow routing– Automatically

– Ad hoc

– Conditional routing (rules based)

• Multi-level approvals

• Standards-based, certified/validated integration– GL coding honoring business unit/company security, tolerance matching rules

• Process automation examples– duplicate invoice checking

– automatic GL coding or distribution

– automatic matching including looping cycle when invoices precede goods receipts

– automatic transaction posting to ERP system for payment

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

What does Tungsten Workflow do? (continued)

• Automatic email notification

• Reminders and escalation for delayed processes

• Notes

• User Proxy – for backup while away

• Detailed history and workflow inquiry – auditable

• Tungsten Forms (optional component) – to develop custom workflow plug-ins for processes beyond accounts payable

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

Reporting is critical Work in process Work item history Backlog reports Productivity reports Easily create and schedule

custom reports

• High Impact Charts

• Export to All Popular File Formats

• Ability to drill down to detail / view backing documents

Excel PDF Word XML RTF

43.250.4

30.5

0

20

40

60

Days Payable Outstanding

2013 2014 2015

5

8

2

4

Assigned Invoices >2 days

Dana ~ 5 Toby ~ 8

Janet ~ 2 Michael ~ 4

0

50000

100000

Jan Feb Mar Apr May

Days to Pay

Paid > 30 Paid < 30

Searching and Reporting It’s just as important to be able to get data out of the system…

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

Mobile CapabilitiesMobile device enabled – Tablets and SmartPhones

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

Invoice Status Service

• Electronically extracts invoice status data from buyers’ ERP systems and presents it to suppliers

• 24/7 visibility

• Up-to-date/accurate information on each invoice:

o Received, Approved, Paid, Hold, in Exception or Rejected

o Payment date is included with Approved status

• Answers the two most common supplier questions:1. Where is my invoice?2. When will I get paid?

Automatically updated as a natural byproduct of workflow processing

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

Tungsten Workflow vs. native ERP workflow

There are numerous advantages of using Tungsten Workflow over native ERP workflow, including but not limited to:

• Tungsten Workflow users do not require ERP login credentials and associated ERP licenses to perform work including but not limited to GL coding or distribution and approvals and exception handling.

• Tungsten Workflow does not require extensive IT technical skills to set up and maintain workflow processes, which enables our clients to more readily update existing processes and add new workflow processes without consuming scarce IT resources or outside consultants.

• Because Tungsten Workflow is tightly-integrated yet external to your ERP system, it can be used for a wide variety of other processes external to the ERP.

What we do better than native ERP workflow choices

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

What if you have already implemented AP workflow?

Common issues with previously implemented workflow:

• The solution provider you bought from subsequently sold their company to another solution provider who offers a competing solution, and the solution you have in place isn’t their flagship offering.

• The solution you thought you bought wasn’t what you ended up with after the ink dried on the contracts you signed.

• You want to do straight-through processing matching PO-based invoices at the line item level, but the solution you have in place doesn’t capture line item data.

• You want to upgrade your ERP system; however, the AP automation solution you’re running isn’t supported for the newer ERP version.

• Your AP automation solution doesn’t come with standard integration with your ERP system, and you’re tired of trying to manage the custom integration you’ve had to develop between those two systems.

“Give us your oversold, your underserved, your unsupported”

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

Suite of Products

Tungsten Network consists of a suite of products positioned to reduce costs and increase visibility of purchase-to-pay transactions

Integrated End-to-End Technology Solution

Workflowe-Invoicing Analytics Early Payment

TUNGSTEN NETWORK

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

e-Invoicing

• Electronic invoice deliveryo Receipt of e-Invoices directly from integrated suppliers, which pass through validation rules in the

network portal prior to delivery to the buyer

o Web forms filled in the portal by suppliers to create e-Invoices

o PO conversion in the portal by suppliers to create e-Invoices

• Purchase order deliveryo Providing electronic PO delivery to suppliers on behalf of the buyer in the portal or via data file

• Invoice status serviceo Supplier self-service providing status back to suppliers in the portal, thus reducing supplier calls to

the buyer

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

What makes Tungsten Workflow unique?

Certified ERP Integration

Professional Services

Workflow Can be Used

outside of AP

Strong Reporting Included

Flexible & Configurable Natural

progression to e-Invoicing and Spend Analytics

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

What makes Tungsten Workflow unique?21

• A cornerstone component of the most extensive end-to-end AP automation solution suite in the industry – consisting of means to efficiently onboard and process all invoices including electronic invoices, provide status of all invoices to suppliers, view and analyze invoice processing data, and analyze potential spend and compliance anomalies

• Strong, standards-based, certified/validated integration with SAP (SAP Certified Integration), Oracle E-Business Suite and JD Edwards (Oracle Validated Integration) – leveraging ERP data, security model, and business rules real-time, live)

• Tungsten Workflow was purpose-built to be flexible and configurable – fitting with the client’s business process (not required to adhere to predefined, inflexible processes)

• Strong, inherent reporting functionality for dashboards, analytics, and KPI that leverages the same security model as the rest of the Tungsten Workflow application

• Delivered and supported by the most experienced AP automation team in the industry – average tenure 2-3x industry average, delivering to achieve project success with a proven methodology built on years of experience

• Solution which can be used well beyond AP – for additional business process management applications and document management developed by business process knowledge workers with little/no IT technical or Tungsten resource involved

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

Key areas for efficiency gains with Tungsten Workflow

Reduce Manual

Matching

Improved Exception Handling

Approval Handling

GL Coding & Distribution

Automatic Posting into

ERP

Live & Real Time ERP

Integration

Improved Visibility

Finding & Researching

Invoices

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

Key areas for efficiency gains with Tungsten Workflow

1. Reduced time and effort by reducing manual matching

2. More efficient match exception processing

3. Tracking and escalation of approvals

4. GL coding or distribution of non-PO invoices

5. Automatic posting of invoice transactions in the ERP system for payment

6. Integration to ERP that is live and real-time

7. Improved visibility and faster, more accurate accruals management and posting

8. Finding and researching invoices and associated workflow history for audit purposes

© Copyright Tungsten Corporation plc 2015. The information contained herein is subject to change without notice and is confidential and proprietary to Tungsten Corporation.

Next steps

Contact:

[email protected]

[email protected]

and visit us at: www.tungsten-network.com for:

• Future webinar information, case studies, blog, whitepapers, etc.

Diann FergusonDirect: +1 419.872.1930, ext. 205Mobile: +1 419.290.2420