Art Sarno Product Marketing Director Kofax

Kofax TotalAgility® Accounts Payable Automation -- A Best in Class AP Solution

Kofax – Global Presence

Successful Customers: 20,000+ Software seats: 150,000+ ERP, CRM, LOB integrations: Tens of thousands

NASDAQ & LSE: KFX Headquarters: Irvine, CA Employees: 1,200+ in 30 countries Channel partners: 800+ in 70 countries

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Kofax Accounts Payable Solutions

AP Solutions Market Leader

Kofax TotalAgility® Accounts Payable Automation

Multichannel capture

Best practice AP workflows

ERP integration • Microsoft Dynamics AX OOTB

Analytics

Kofax MarkView®

MarkView for Oracle EBS

MarkView for SAP

MarkView Advisor - Analytics

MarkView Express - Supplier Portal

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Best-in-Class (20%)

Industry Average (50%)

Laggards (30%)

AP Performance Issues: Well Known in the Market

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Cost to process one invoice

Source: Aberdeen Group, AP Invoice Management in a Networked Economy. May 2012

$16.67

$6.29

$3.34

Early payment discount capture rate

18%

47%

90%

Time to process one invoice

16.3 days

6.1 days

4.1 days

#1 Improvement Strategy: Automating Invoice Receipt and AP Workflow

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Kofax Accounts Payable – Solutions for the Whole ERP Market

Source: Gartner: “Market Share Analysis: ERP Software, Worldwide, 2012”, May 7, 2013

ERP Market Share Other

37% 63%

Kofax AP Automation Kofax MarkView

ERP users often seek a complementary AP solution and integrate it to their ERP

Kofax AP automation expands the Kofax value beyond SAP and Oracle E-Business Suite (which are served by Kofax MarkView)

Accounts Payable – What’s Needed?

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Challenge What’s Needed? Common State

Speed 3 days from receipt to approval Ranges from 3 to 20+ days

Cost $2 or less per invoice $3 to $40+ per invoice

Paper Less! 70% of invoices still on paper

Visibility Transparency of AP status Low level of AP insight

Control Standardized processes, enforced internal controls and regulatory compliance

Weak process discipline, imprecise audit trails, inadequate traceability

Accuracy Reduced error rates Rekeying remains too common

Cash optimization Pay when you want Inability to take early discounts or avoid late fees

Ease of change Escalate, expedite, improve Inflexibility mistaken for control

Ease of deployment Fast, simple implementation Adoption painful and slow

Common AP Practice – Too Costly, Slow and Error-prone

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Excessive Paper

Handling

Manual Re-Keying into

systems

Supplier Finance Director People -intensive Approval Processe

s

AP Clerk

LOB Employee

AP Manager

LOB Manager

delay

cost

delay cost

delay

cost

ERP

LOB Systems

Ineffective System

Integration Lack of visibility to processes

Performance Impact of Current Practice

• Excessive, Costly Manual Paper Handling

• High Error Rates in Extraction of Key Invoice Data

• Lost and Duplicate Invoice Issues

• Hazy Visibility of AP Status

• Workflows Fail to Manage Exceptions

• Weak Internal Controls

• Ineffective Integration to ERP and LOB Systems

The AP Automation Advantage

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Validation / Entry

KTA7 Process

Approval Review ERPExceptions

Wait forPayment

Exception Processing

• Data Validation(Business Rules)

• Header• Lines

• Hierarchy• Escalation

• Business Rules• Route to group or

user

• Route to group or user

Interface after invoice KTA ERPapproval and review

• Request comment, Return to Supplier, Cancel, etc.

• Wait for the invoice to be paid in ERP

Capture

Represents source of invoice data as the workflow progresses

Extraction

Reports and Analysis

Kofax TotalAgility AP Automation

ERP integration occurs during validation, entry and matching

Invoice is posted to ERP after the “review” step

On-premise

Cloud deployment options (planned)

ERP search for suppliers, POs, PO lines, invoices available throughout

ERP users have access to AP processing status

Multichannel support

Mobile review, approval or escalation (planned)

Kofax AP Automation – Delivering Four Critical Capabilities

1. Multichannel Invoice Capture and Extraction

2. Best Practice AP Workflow – Productive, Controlled, Adaptable

3. Effective ERP Integration

4. Analytics

2.

3. Effective ERP Integration

Other ERP

MS Dynamics AX OOTB

Multichannel Invoice Capture & Extraction

Analytics

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Best Practice AP Workflow

AP Clerk

Invoice Entry

Line Item Matching

Invoice Approval

GL Coding

Invoice Review

Business Controls

AP Manager LOB Staff

1.

4.

Critical Capability #1

Capture of invoice

Paper, email, fax, e-invoice, mobile, any channel

High-quality digital image

Available in workflows

Extraction of invoice information

PO and non-PO

Preconfigured invoice recognition and online learning

Supplier and header

Line items and amounts

Available in workflows 11

Multichannel Invoice Capture and Extraction 1.

Multichannel Invoice Capture & Extraction

Supplier

Header

Line Items

Amounts

Critical Capability #2

Best Practice Workflow: Productive, Auditable, Adaptable 2 Productive

Standardized flows, high level of automation

Low level of human touch

Efficient human touch, if needed

Auditable Audit trail of every action

Documented AP processes

Reports and dashboards available

Adaptable Easy to assign/re-assign work, escalate, etc.

Fast to expedite for discount capture, discrepancy resolution

Visual workflow redesign

Best Practice AP Workflow

AP Clerk

Invoice Entry

Line Item Matching

Invoice Approval

GL Coding

Invoice Review

Business Controls

AP Manager LOB Staff

Critical Capability #3

Effective System Integration 3 Multichannel Invoice Capture & Extraction

Close integration of invoice images and information with workflow

Flexible exchange of AP information with ERP and LOB systems

Modern system architecture

10,000+ ERP and LOB integrations

Effective System Integration

LOB ERP

Best Practice AP Workflow

AP Clerk

Invoice Entry

Line Item Matching

Invoice Approval

GL Coding

Invoice Review

Business Controls

AP Manager LOB Staff

Critical Capability #4

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4 Analytics Historical – What happened

and why?

Data f/ invoices that have already been paid and related processes

Actionable – What’s happening now?

Real-time or near-real-time data on invoices currently in workflow

Enable intervention to change course of processing

Predictive – All data analyzed to provide visibility into future

Determine next actions based on historical trends, current process states, resource availability, etc.

TotalAgility Accounts Payable Automation - Summary

Remove paper flow Cut cost and errors in invoice receipt Extend to electronic invoice receipt channels Create process-ready information without rekeying

1

2

3

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Cut costs and proactively manage AP processing issues Single, best practice AP workflow for all invoices Visibility and control for audit, compliance Alerts and flexible workflow resolve AP process issues

Implementation cost savings on ERP integration

Flexible, model-based integration: not hard-coded

>1,000 organization rely on Kofax for AP/IP solutions

>400 Kofax staff are AP experts

Effective ERP Integration

A n y E R P

4 Actionable insight that drives better AP performance

Extensible analytics, adaptable to requirements

Actionable Analytics

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Kofax: Proven Market Leader and Visionary

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The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

Multichannel Invoice Capture & Extraction

• Any Supplier

• Any Invoice

• PO and Non-PO

• Structured or Unstructured

• Any Channel (Paper, Email, E-Invoice, etc.)

• Full Extraction of Invoice Information

Best Practice AP Workflow

• Automated Approvals

• Easy to Assign, Escalate, Expedite

• Visibility of Workflow & Invoice Status

• Automatic Audit Logging

• Reports & Dashboards

• Visual Workflow Design

TotalAgility Accounts Payable Automation 1.1 Benefits Summary

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Kofax Accounts Payable Delivers:

• Increased Employee Productivity

• Lower Processing Costs

• Faster Invoice Processing

• Strengthened Internal Controls

• Greater Process and Status Visibility

• Optimized Cash Management

• Reduced Error Rates

• Increased Operational Flexibility

• Lower Total Cost of Ownership

TotalAgility Accounts Payable Automation – Sample Screenshots

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Invoice Validation – Manual intervention after automatic information extraction

TotalAgility Accounts Payable Automation – Sample Screenshots

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GL Coding – ERP codes available in drop-down to ensure use of correct codes

TotalAgility Accounts Payable Automation – Sample Screenshots

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Invoice Approval – Second approval triggered by spend limitation and routed via approval hierarchy

TotalAgility Accounts Payable Automation – Sample Screenshots

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AP & ERP Search – Assisting AP staff to resolve issues, discrepancies and queries

TotalAgility Accounts Payable Automation – Sample Screenshots

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AP Work Queue – Key data and task status presented to the relevant user

Invoice Activity Analysis

Cash Management Insight

Who Relies on Kofax for Accounts Payable Automation?

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>1,000 customers operating in 100+ countries

Case Study

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Challenges

Increase accountability and transparency for all invoices

Reduce labor-intensive invoice and AP handling

Cut paper flow

Enforce standardized process, but add flexibility where needed

50% of staff is mobile

Results

Approval time cut to two days

Absorbed 50% workload increase “without effort”

100% of invoices in standard process

99.99% of invoices paid correctly, the first time

Customer: Hyundai Motor Company Australia

Business: Subsidiary of Hyundai, the world’s most profitable car company

Application: Accounts payable automation

“With total accountability and transparency, our executives can see exactly where the money is going, who is ordering what, and who is paying what.” –Hyundai Motor Co. Australia

Kofax Summary

AP solutions market leader

Trusted in AP by 1,000+ AP departments

Global, financially strong

Comprehensive, end-to-end solution from a single vendor

Best practice solution

Future-proof

Acclaimed by independent analysts

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For further information, please contact:

Art Sarno Product Marketing Director, Kofax Phone: 1-(949) 783-1608 Email: art.sarno@kofax.com