Upload
gary-rodgers
View
215
Download
0
Tags:
Embed Size (px)
Citation preview
© 2011 Financial Operations Networks LLC
AP Automation Case Study: The Successes and the Challenges, Part II
Amy FineLevi Strauss & Co.
Wednesday, April 13, 2011
www.TheAPNetwork.com Page 2
THE ACCOUNTS PAYABLE
Leadership Conference
www.TheAPNetwork.com Page 3
THE ACCOUNTS PAYABLE
Leadership ConferenceCompany History
• May 20, 1873 – Levi Strauss and Jacob Davis receive a patent for the process of riveting pants and the blue jean is born
• First factory opened in the South of Market area of San Francisco in 1880
• 1977 – Levi’s was the world’s largest jeans manufacturer
• Today Levi’s jeans are sold in over 160 countries
• Global Headquarters located in San Francisco, California
www.TheAPNetwork.com Page 4
THE ACCOUNTS PAYABLE
Leadership ConferenceBrands
www.TheAPNetwork.com Page 5
THE ACCOUNTS PAYABLE
Leadership ConferenceShared Service Center – Eugene Oregon 1999
www.TheAPNetwork.com Page 6
THE ACCOUNTS PAYABLE
Leadership ConferenceShared Services Center
• Indirect Requisition-to-Check – RTC
• Hire-to-Retire – HTR
• Order-to-Cash – OTC
• Record-to-Report – RTR
www.TheAPNetwork.com Page 7
THE ACCOUNTS PAYABLE
Leadership ConferenceIndirect Requisition-to-Check
• Invoice Processing
• GRIR Maintenance
• Travel and Expense
• Vendor Master
• Indirect Procurement
www.TheAPNetwork.com Page 8
THE ACCOUNTS PAYABLE
Leadership Conference
Become a student of change. It is the only thing that will remain constant.
— Anthony J. D’Angelo
www.TheAPNetwork.com Page 9
THE ACCOUNTS PAYABLE
Leadership ConferenceInvoice Processing
Utilize different accounting systems for each country:• Canada – Cedar Software
• Mexico – SUN Systems
• United States – SAP
www.TheAPNetwork.com Page 10
THE ACCOUNTS PAYABLE
Leadership ConferenceSAP Purchasing Guidelines
• SAP Procurement Process
• SAP Payment Request
• Corporate Card
www.TheAPNetwork.com Page 11
THE ACCOUNTS PAYABLE
Leadership ConferenceUploads
• Advantage IQ – utilities for approximately 170 Retail Stores – 3 invoices a week compared to 170+ per month
• Staples – office supplies – average 50 invoices a week
• Serengeti – legal invoices 50 a week
• IQ Navigator – contract labor – large volume
• Granite – telephone – 215 invoices a month
• Rental payments – 200 invoices a month
www.TheAPNetwork.com Page 12
THE ACCOUNTS PAYABLE
Leadership Conference
• Service Channel – retail store maintenance
• OTM freight transactions that will not go through EDI
• JP Morgan Central Bill
• Weekly benefits
• Continually asking…Can this be on an upload?
Uploads (Cont’d.)
www.TheAPNetwork.com Page 13
THE ACCOUNTS PAYABLE
Leadership ConferenceEDI
• CASS – for FedEx and UPS (1,800 invoices a month)
• Oracle Transportation Management – inbound freight from contractors (500 invoices a month)
• Outbound freight – freight from distribution centers to customers (2,000 invoices a month)
www.TheAPNetwork.com Page 14
THE ACCOUNTS PAYABLE
Leadership Conference
Processors Were Spending Time:
• Entering invoices and payment requests from paper copies
• Often found that no goods or service receipt had been done
• Following up with requisitioners, often several times
• Batching invoices at the end of the day so that they could be scanned
• Responding to vendor and requisitioner payment inquiries
www.TheAPNetwork.com Page 15
THE ACCOUNTS PAYABLE
Leadership ConferenceManual Processing
• Currently have six invoice processors
• Each can manually process between 600 and 1,200 invoices a month
• About 52% percent of invoices had been making it through to payment the first time touched
• Of the remaining 48%, 17% were duplicates and 31% had some type of problem
www.TheAPNetwork.com Page 16
THE ACCOUNTS PAYABLE
Leadership Conference% of Non-Trade Invoices Paid on Time
www.TheAPNetwork.com Page 17
THE ACCOUNTS PAYABLE
Leadership ConferenceFront-End Imaging
• September of 2009 received approval to begin a front-end imaging project
• Began RFP process in January 2010
• Reviewed four different vendors
• Signed a contract with ReadSoft in June 2010
• Go live date was February 28, 2011
www.TheAPNetwork.com Page 18
THE ACCOUNTS PAYABLE
Leadership Conference
www.TheAPNetwork.com Page 19
THE ACCOUNTS PAYABLE
Leadership Conference
• Incoming mail goes directly to the Scan Room and are scanned into ReadSoft (IPA)
• Incoming e-Invoices are uploaded into IPA
• Invoices are separated into different categories and scanned into IPA
• The program displays the interpreted fields that can be compared to the scanned image
• The user makes the necessary corrections in verify so that correct categories are recognized
www.TheAPNetwork.com Page 20
THE ACCOUNTS PAYABLE
Leadership Conference
www.TheAPNetwork.com Page 21
THE ACCOUNTS PAYABLE
Leadership Conference
• Invoice transfers to INVOICE COCKPIT by ReadSoft for processing
• Invoices without errors flow through system
• Invoices with errors will kick off a workflow
• Invoices are paid according to terms in the vendor master
www.TheAPNetwork.com Page 22
THE ACCOUNTS PAYABLE
Leadership Conference
www.TheAPNetwork.com Page 23
THE ACCOUNTS PAYABLE
Leadership Conference
www.TheAPNetwork.com Page 24
THE ACCOUNTS PAYABLE
Leadership Conference
www.TheAPNetwork.com Page 25
THE ACCOUNTS PAYABLE
Leadership Conference
www.TheAPNetwork.com Page 26
THE ACCOUNTS PAYABLE
Leadership Conference
• Payment requests are entered though IPA WEB CYCLE (ReadSoft)
• Sent to an authorized approver through web-cycle
• Reviewed by an invoice processor and flow through the system for payment
www.TheAPNetwork.com Page 27
THE ACCOUNTS PAYABLE
Leadership Conference
• LOVE the new tool!
• It is intuitive and easy to use
• Requires no training
Initial feedback from requisitioners:
www.TheAPNetwork.com Page 28
THE ACCOUNTS PAYABLE
Leadership Conference
• No more paper clutter
• Ability to electronically search for invoices
• Have visibility to PO right away
• Can enter invoice and save when partially complete
• Automated workflow
• Automated escalation of workflow
Initial feedback from invoice processors:
www.TheAPNetwork.com Page 29
THE ACCOUNTS PAYABLE
Leadership Conference
• Image is easy to send
• Audit trail of communications within the tool
• Outlook email does not get full
Initial feedback from invoice processors: (Cont’d.)
www.TheAPNetwork.com Page 30
THE ACCOUNTS PAYABLE
Leadership Conference
• Listen to ReadSoft about the timing of training
• Test!
• Catch up on invoice backlog before going live
Lessons learned:
www.TheAPNetwork.com Page 31
THE ACCOUNTS PAYABLE
Leadership Conference
• Vendor portal for payment inquiries
• Add more vendors to EDI
• Create uploads where they make sense
• Global SAP
What’s next?
© 2011 Financial Operations Networks LLC
Thank You!