Accounts Payable Best

Practices: To Automate or

Not

Agenda

Perception vs. Reality

Best-in-Class Steps to Success

Electronic Invoicing / OCR

Removing Touch Points

COR360 Demo

ACCOUNTS PAYABLE:

PERCEPTION VS. REALITY

Perception vs. Reality

Perception:

– Transactional

– Back-office

– Cost center

Reality:

– Department that controls the flow of money outside of

the organization

– A key business process that impacts an organization’s

cash flow and bottom line

But…

How can your Accounts Payable team focus on

the more strategic picture if they are focused on:

Tracking down lost invoices

Resolving supplier disputes

Fixing errors from manual data entry

Spending countless hours resolving exceptions

Inefficiencies of Paper-based

Processes Plague AP Operations

High processing cost

Poor visibility of in-process invoices

Too many errors and exceptions to resolve

Inability to effectively manage cash flow

BEST-IN-CLASS STEPS

TO SUCCESS

How does your AP performance

compare?

Best-in-Class

• 4.1 days to process an invoice from receipt through approval

• $3.34 average cost to process an invoice • 90% capture rate of early payment discounts

Industry Average

• 6.1 days to process an invoice

• $6.29 average cost to process an invoice

• 47% capture rate of early payment discounts

Laggards

• 16.3 days to process an invoice

• $16.67 average cost to process an invoice

• 18% capture rate of early payment discounts

Source: Aberdeen Group 2012

Best-in-Class Enterprises are More

Likely to:

Invest in AP automation

Centralize invoice management processes

Fully integrate AP automation with ERP or financial

solution

Measure and benchmark performance on a

monthly or more frequent basis

With AP Automation

You Can:

Reduce time, errors, and costs associated with

paper-based invoice processing

Simplify and accelerate review and approval

processes

Get complete visibility into invoice status from

origination to payment

Move from transaction processing to transaction

analysis

Transition from paper-based processes

to more effective automated workflow can

best be achieved through a series of

progressive steps rather than a “Big Bang”

initiative.

Different stages of AP Automation

Source: Paystream Advisors

Studies Show that Organizations

that Automate AP Experience…

Source: Aberdeen Group

25%

improvement

in labor

productivity

90-95%

reduction

in paperwork

Elimination of

lost invoices,

late payments

Improved

transparency

and visibility

*Based on results of companies utilizing full technology solution

REDUCING PAPER WITH

ELECTRONIC INVOICING

What is Electronic Invoicing?

Using a third party to perform scan and capture can help AP

departments to be paperless and 100% electronic

PDF

E-mail

Fax

• Digital from creation

• Issued, received, and

processed electronically

Automated Scan and Capture

Intelligent

Scanning

Data

Extraction Data

Validation

AP

Workflow

Scan and Prep

Document sorting

Document classification

•Invoice

•Backup

•Expense report

•Junk mail

Data Capture

Invoice: 12345

Date: 12/20/2010

Amount: $8,532.00

Vendor: Verizon

Attention: 1101

PO #: 98765

Quality Assurance

• Validate

discrepancies

• Clean data so you

do not have to

Smart Routing

• Route to approvers

• Route for matching

• Automated

exception handling

Good vs. Best

In-house Outsourced

Investment in required

equipment No investment in equipment

Maintenance costs No maintenance costs

Interruptions if equipment

breaks

No equipment interruptions,

SLAs

Training required No training required

AP manages paper, not tasks;

why manage technology when

you are trying to manage AP?

NO PAPER TO MANAGE!

Scan & Capture

REMOVING TOUCH POINTS

WITH WORKFLOW

AUTOMATION

Why Remove Touch Points in AP?

Removing touch points allows AP to:

– Reduce processing errors and avoid mistakes that lead to

incorrect PO pricing and duplicate or late payments

– Simplify, standardize, and centralize processes; support

cross-functional departments in achieving cohesiveness

– Ensure restricted documents are only viewed by authorized

parties

ZeroTouch Invoice Processing ensures you will never have

touch a paper invoice again!

Not Every Invoice Needs Your

Attention

– SmartRouting uses rules to automatically route invoices

for coding/approval

– Automated delegation of authority approval checking

eliminates manual verification

– An exception handling queue can be used to notify users

of exception invoices and reasons for the exception

– Automatic reminder e-mails are triggered when an invoice

is not approved in a timely manner

Automated invoice workflow tools enable you to prioritize

only that need your attention!

Straight Through Processing

Overcome barriers to automated three-way matching

Process Automation Checklist

Invoice Virtualization – Scanning on the front end

– Optical Character Recognition (OCR) technology can

automate the data capture process

– Electronic invoicing

– Outsourcing scan and data capture processes to an Invoice

Virtualization Center

Workflow and Matching – Approval-based invoices

– Automated delegation of authority

– Automated three way matching of PO-based invoices

Removing Touch Points – SmartRouting

– Straight Through Processing

ABOUT CORCENTRIC

PO Requisition

Electronic Invoice Network

Invoice OCR Capture & Extraction

Approval Workflow

Invoice Matching

ERP Integration

Payment & Remittance Mgmt

Cloud-based AP automation

solutions

Corcentric is a leading provider of

financial process automation

solutions, specializing in Accounts

Payable automation.

Corcentric compliments existing

systems, while providing cutting-

edge workflow efficiencies

Corcentric helps you transform

your AP from a cost center to a

strategic asset

About Corcentric

COR360 PRODUCT DEMO

PO

Requisitions

Approval

Workflow

Automated

Invoice

Matching

Straight

Through

Processing

Dashboard

Reporting

Document

Archive

Platform

Convert any invoice format into

electronic data at the

Invoice Virtualization Center.

AP / ERP System

Send and receive invoices with

direct integration through the

Corcentric supplier network.

Intelligent

Scanning

OCR Extract Data

Validation

AP Workflow

Location

Scanning Online

Indexing

Virtualization Options

Invoicing Methods

Scan/Upload

E-invoices

Mail E-Mail

Web Form

Fax

Approval-based Workflow

Approved Invoice / AP

Review

Electronic

Interface

AP System

First Level Approval

Higher Level Approval

Invoice Notification

Smartrouting

Purchase Order Requestor

Attention Name or Department

Vendor Based

Invoice Amounts

Balance Due: $992.53

Purchase

Order

Three-way Matching

No Human

Intervention

Straight

Through

Processing

To see a live demo of COR360, visit corcentric.com or call 703.962.9474