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WEBINAR

Sarah Fane

Head of Research

sharedserviceslink

Daniel Kimpton

Business Manager

Statement-Matching.com

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• Context

• The Secret to Reducing Invoice Exceptions

• Some background and challenges found within AP

• Approaches by AP departments to supplier statements

• The silver bullet

• What it can mean for you

• Q&A

• We know that when it comes to Accounts Payable every penny counts. So how can

organisations be sure that their ledgers are 100% accurate?

• The reality is that with the sheer volume of invoices from thousands of suppliers,

some errors will inevitably slip through the net.

• Yet, Accounts Payable are fighting back. They are adopting a new approach which is

helping them to reconcile supplier statements with ease and accuracy, making their

lives much easier.

How many invoices does your organisation process annually?

• Less than 100,000

• 100,000 - 200,000

• 200,000 - 500,000

• 500,000 - 1million

• 1million +

Which supplier statements do you currently reconcile?

• All

• Only our top accounts

• We don’t reconcile any supplier statements

• I don’t know

The Secret to Reducing Invoice

Exceptions

Presenter: Daniel Kimpton

Objectives for the Webinar

Use live data from 10 organisations in different sectors to analyse

the accuracy of their ledgers

• Review the key controls organisations have in place to maintain

accurate ledgers

• Focus on how to identify, resolve and reduce errors

How to apply the same approach in your organisation as a Proof of

Concept

Key Reasons to Maintain Accurate Ledgers

Ensure supplier liabilities are accurate for cash flow forecasting and

financial reporting

• Pay suppliers on time

Maximise profits

GRNI/GRIR balances

Reduce supplier queries

What are the key controls to improve accuracy?

Procure to Pay Process Compliance

• ERP checks

Invoice automation to reduce manual errors

Idiot proof the process so business users make less mistakes

Reconcile supplier statements to identify any discrepancies between your

ledger and the suppliers

So what can go wrong?

Users do not always follow the process

• ERP duplicate checks are basic at best

Invoice automation doesn’t mean errors can’t happen and you’re relying on it

being right with less visibility

Users find ways around things, ignore error messages, approve without really

checking

You don’t have enough time to reconcile any or otherwise the volume of

statements you would ideally like to

What are the key requirements for ledger accuracy?

Are all of invoices and credits on our system?

• Are there any un-paid invoices on vendor accounts the vendor is not chasing

payment for?

Do we have any miss-postings?

Wrong vendor account;

Debit/Credit wrong way round;

Incorrect currency;

Incorrect amount

Invoice Number and Invoice Date Errors.

Are there Goods Receipts Not Invoiced that we can return to profit?

The only way to truly check your ledger is

accurate is to compare it to the supplier’s

ledger .

In other words; you have to reconcile as

many supplier statements as possible!

How to check if your ledger is accurate

Reconciling statements manually

Extremely time consuming

Can only reconcile a small number of suppliers

Tedious & un-popular task with users

First thing that suffers when AP are busy

No audit trail to log and keep track of issues and queries

No way to report

Not all AP users are proficient with Excel and vlookup or any other manual

method is out of date the moment it’s finished

How do we identify and resolve the issues?

• Policy and procedures

• Automate the reconciliation process

• Tools to manage exceptions and report on the errors to

drive continuous improvement

• Engage your suppliers ~ They have just as much interest

as you do.

Automated statement reconciliation

• Daily Synch of AP ledgers with Statement-Matching.com

• Upload Excel, Paper and PDF statements

• Automated reconciliation of supplier statements

– On initial upload

– Re-reconciled daily on upload of new ERP data

– On demand by users

• An overall status is allocated to each statement and a status for each line on

the statement

• Fully Matched – All documents on statement are on your ledger and there

are no un-paid invoices on the vendors account dated before the

statement.

• Fully Matched with Data-Mismatches – All documents on statement are on

your ledger, but there are data errors eg. Invoice #/Invoice Date/Invoice

Amount/Debit vs Credit

• Un-Paid Items Missing on Statement – Un-paid invoices on vendor

account that are not on the statement (invoices dated prior to statement.

• Incomplete Matching – Documents on statement that are not on ledger.

• Complete – User has finished working on statement and set to Complete

to freeze the rec at that point in time.

Statement Statuses Explained

Managing the Exceptions

Send reports to suppliers to request copies of missing documents and invoice

status

• Add notes and flags to manage follow up

Manage statements based on priority

Focus on high volume vendors ~ Resolving root cause issues will trickle down

to all suppliers

More proof and visibility for management about where the problems in the

P2P process really sit!

Real Data Insights

AP Ledger Accuracy and Error Quantification

Customer Industry Total Invoice Volume

per year Total No. of Invoices

Reconciled Total No. Statements

Reconciled Total Value Statements Reconciled Avg Statement Value

Avg. No. Invoices Reconciled PM

Construction Manuf. 80,000 35,613 3,396 413,447,655 121,745 3,561

Formula One 60,000 34,570 2,666 93,266,163 34,984 3,457

Govmnt Services 360,000 369,501 13,445 763,768,782 56,807 36,950

Telco 35,000 40,810 2,204 2,671,851,153 1,212,274 4,081

Water Utility 120,000 134,868 4,453 951,789,369 213,741 13,487

Food Manuf. 150,000 100,858 4,494 536,131,138 119,299 10,086

Logistics 120,000 60,776 773 390,959,060 505,769 6,078

Mining 1,200,000 41,205 3,936 130,315,058 33,109 4,121

Mining 120,000 41,205 3,750 4,042,786,351 1,078,076 4,121

Summary Data

Construction Manufacturing

Total Invoice Volume per year

Total No. of Invoices Reconciled

Total No. Statements Reconciled

Total Value Statements Reconciled

Avg Statement Value Avg. No. Invoices

Reconciled PM

80,000 35,613 3,396 413,447,655 121,745 3,561

Overall Statement Status Report based on Statements Processed Jan 1st 2017 - Oct 31st 2017

New Fully Matched Fully Matched with Data Miss-

Matches Un-Paid Items Missing on

Statement Incomplete Matching Complete Merged

25 50 23 849 94 2,355 0

0.7% 1.5% 0.7% 25.0% 2.8% 69.3% 0.0%

Breakdown of Errors Report based on 1,223 Most Recently Dated Statements (Total Value of 69,133,923)

Missing Invoices Missing Credits Debit/Credit Miss-Posting Un-Paid Invoices Missing

on Statement Un-Paid Credits Missing

on Statement Incorrect Currency

Invoice Amount Higher on Ledger

Invoice Amount Lower on Ledger

1,395 82 6 888 57 77 31 10

23,535,203 4,313,225 -4,177 9,396,377 50,769 1,399,711 44,241 19,552

34.0% 6.2% 0.0% 13.6% 0.1% 2.0% 0.1% 0.0%

Mining Company






Reconciled PM

1,200,000 41,205 3,936 130,315,058 33,109 4,121


New Fully Matched Fully Matched with Data

Miss-Matches Un-Paid Items Missing on


4 123 60 202 335 2,817 395

0.1% 3.1% 1.5% 5.1% 8.5% 71.6% 10.0%

867 Most Recently Dated Statements (Total Value of 342,072,871)


on Statement Un-Paid Credits Missing on

Statement Incorrect Currency



1,392 273 86 9 33 52

5,112,934 2,394,028 234,649 5,339 16,838 76,117

1.5% 0.7% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0%

Food Manufacturing

Total Invoice Volume per year Total No. of Invoices

Reconciled Total No. Statements

Reconciled Total Value Statements

Reconciled Avg Statement Value

Avg. No. Invoices Reconciled PM

150,000 100,858 4,494 536,131,138 119,299 10,086





64 709 298 1,633 1,130 173 11

1.4% 15.8% 6.6% 36.3% 25.1% 3.8% 0.2%







6,308 362 1 1,983 20 135 74 160

35,401,107 3,480,537 -225,785 7,809,372 16,417 582,587 358,906 660,029

29.7% 2.9% -0.2% 6.5% 0.0% 0.5% 0.3% 0.6%






Reconciled PM

360,000 369,501 13,445 763,768,782 56,807 36,950





406 4,657 1,262 4,433 2,692 0 0

3.0% 34.6% 9.4% 33.0% 20.0% 0.0% 0.0%



on Statement Un-Paid Credits Missing on

Statement Incorrect Currency



16,656 1,654 68 8,396 507 617 812 23

47,876,320 3,043,126 551,563 29,986,771 3,465,402 3,246,169 2,522,999 22,213

34.3% 2.2% 0.4% 21.5% 2.5% 2.3% 1.8% 0.0%

Govmnt Services






Reconciled PM

60,000 34,570 2,666 93,266,163 34,984 3,457


New Fully Matched Fully Matched with Data Miss-

Matches Un-Paid Items Missing on


6 78 18 141 61 2,361 1

0.2% 2.9% 0.7% 5.3% 2.3% 88.6% 0.0%

Breakdown of Errors Report based on 642 Most Recently Dated Statements (Total Value of 14,624,988)






352 38 1 848 38 1 7 7

1,498,611 115,048 5,037 50,769 115 8,800 12,196 7,638

10.2% 0.8% 0.0% 0.3% 0.0% 0.1% 0.1% 0.1%

Formula One Team

In Summary

Reconcile more statements to improve ledger accuracy

Improve bottom line

Proactive with suppliers = Fewer queries

Easy to do – Try the 4 week Proof of Concept

How to try it for yourselves as a

Proof of Concept

Proof of Concept

Free Proof of Concept for 1-10 vendors ~ We need the following:-

1. Invoice data in Excel (open items + 3 months paid)

2. Statements in Excel, PDF or Scanned Images

3. Attend online training (1 hr)

4 week period with weekly calls to see how you’re getting on,

work through any issues and help you maximise use of the

system.

Any Questions?

About Us

Founded 2014 – Spin off from Cogent Consulting, P2P Invoice

Automation Specialists

• More and more of our customers wanted a solution to automate

supplier statement reconciliation

Statement-Matching.com was developed from the outset based on

input from Accounts Payable users and that’s how we continue to

drive development for each release

Customers in EMEA, Americas and APAC

Some of our Customers

Why choose Statement-Matching.com?

Why chose Statement-Matching.com?

No software or hardware to install or maintain

All we need for setup is an ERP data extract with daily update files sent via

secure FTP

Free Proof of Concept to see it working with our data before making any

commitment

Proof of Concept is a live system, so you are ready to go live

No upfront costs ~ Low monthly subscription fees

30 day rolling contract, no minimum term

How does it work?

Automated synching with the AP ledgers

Automated reconciliation of Excel, Paper & PDF statements

Exceptions can be managed & prioritised based on error type

Key supplier reports to ensure they are reconciled

Send reports to suppliers to request copies of missing documents and give

status of all their invoices

Optional supplier portal providing invoice status, query handling and

statement upload

Ensure all invoices and credits have been received

Identify miss-postings and potential duplicates

Identify invoice entry errors:-

Invoice Number & Invoice Date errors

Invoice/Credit wrong way round

Incorrect Amounts

Incorrect currency

Proactively identifying issues leads to:-

Paying more suppliers on time;

Fewer supplier queries

Improve supplier relationships

Accurate AP ledgers

Improved and faster audit

Continuous improvement through root cause analysis

Benefits of using Statement-Matching.com

Solution Overview

Dashboard – Key Reports & Statuses

Search Screen

Search Results

Reconciliation Example – Missing Credit Note

Let’s Look at Some Scenarios

Missing Credit

Incomplete Matching

Missing Credit Note

Email PDF Report to Vendor

Copy of PDF Report the Vendor Sees

Add Notes to denote action taken

Add notes & view existing notes


Un-paid items on system missing from statement

Un-paid items missing on statement


Fully Matched with Data Miss-Matches

Fully Matched with Data Mismatches

Multiple Errors

Supplier Self-Service Option

Key Features

View invoice status, including payment due dates and payment

references

View payments and invoices included on payment

Submit messages at document level, which will be routed to

existing email inbox for queries

Upload statements to reconcile their own account

Submit missing invoices/credits to default email account

Supplier Portal

My Payments

Upload Statements

Reconciliation Results

Reporting

• Reports can be run by

company and vendor,

sorted and summed

• Reports can be used

to list and manage

statements by error

reason.

Statement Reporting

Supplier Reporting

Share statement audit reports with vendors

Internal/External Audit Report

Audit Reports:

Statement totals

Payment totals

Balances

Copy of reconciliation and image

appended

Nov 29th Dec 6th Dec 13th

Oct 10th-12th Feb 2018