Best practices for optimizing P2P with Tungsten Workflow

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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.

    Todays 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

    CEOOur cost of capital and material costs are too high.

    CFOMy 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.

    SuppliersDoing business with that company is difficult as they are unable to tell when they pay their invoices.

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

    PurchaserWe could lower the cost of goods if we could make systematic use of cash discounts.

    Accounts PayablesWe 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 Its 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 isnt their flagship offering.

    The solution you thought you bought wasnt what you ended up with after the ink dried on the contracts you signed.

    You want to do straight-through proces