Beruflich Dokumente
Kultur Dokumente
INSIGHT
SERIES
SAP
Automation Solutions for SAP:
Solutions for Touch-less Accounts Payable
Q2
2012
www.paystreamadvisors.com
Automation
Solutions for Table of Contents
SAP
Table of Contents
Executive Summary.......................................................................... 1
Solution Profiles............................................................................. 14
Basware.................................................................................................................. 14
Basware Case Study...................................................................................17
Direct Insite............................................................................................................. 18
Direct Insite Case Study..............................................................................21
Dolphin....................................................................................................................23
Dolphin Case Study.....................................................................................27
ReadSoft.................................................................................................................28
ReadSoft Case Study..................................................................................32
SAP.........................................................................................................................33
SAP Case Study.........................................................................................36
Selecting a Solution....................................................................... 37
i
Automation
Solutions for Executive Summary
SAP A significant shift is starting to shake traditional AP operations, especially for SAP
clients. While invoice imaging and workflow are now mature technologies, their
Executive Summary adoption lags. PayStreams research indicates solutions streamlining the receipt-
to-pay cycle have only been adopted by 45 percent of Global 2000-sized North
American companies. Consequently, a large portion of the SAP user community still
relies on paper-based invoice processes.
Until recently, the biggest stumbling block to removing paper from the finance
department was getting the project started. Today, however, finance managers
struggle with a new problem: where to get started? Due to the explosion of options
- from invoice imaging, automated data capture, approval workflow, eProcurement,
electronic invoice portals, supplier collaboration, PO compliance, discounting
and payment automation decisions are complex. To make matters worse, new
technology companies and solutions continue to enter into the ePayables automation
arena. PayStreams research suggests that the explosion of options together with a
lack of clarity about solution choices is slowing the adoption rate.
The goal of every finance department is to provide information for managers to
make investments and budget decisions. With limited or no visibility into accruals,
companies often have delayed closes subject to inaccuracies caused by the
understatement of expenses and overstatement of income. This report is aimed
at finance and IT directors at organizations using SAP who seek to understand
the significant competitive advantage of improving their payables department.
Individuals who require product information to identify appropriate solutions for their
receipt-to-pay automation needs within an SAP environment will find in this report
appropriate solutions that can automate all payables functions.
Automation Solutions for SAP: Solutions for Touch-less Accounts Payable is a
PayStream Advisors Technology Insight Series report focused on SAP-specific
e-Payables solutions, including invoice automation and payments, which leverage
SAP capabilities and have seamless integration with SAP. It will highlight the
advantages of solutions that work within SAP as well as those solutions that sit
outside SAP and discuss the relative merits of both approaches.
1
Automation
Solutions for The ERP Environment
SAP
To understand the current state of invoice automation, it is useful to take a step back
The ERP
Environment and briefly look at the evolution of business software. Todays enterprise resource
planning (ERP) solutions grew out of manufacturing resource planning (MRP)
software, which was essentially designed to match demand to the supply chain.
MRP systems include inventory control, bill of material processing and production
scheduling in order to help organizations plan manufacturing, purchasing and delivery.
Accounting was handled in a different system.
ERP systems where subsequently designed to wrap everything into one package.
By integrating MRP and GL/Accounting with other core functions like maintenance
and HR into a single software suite, organizations realized a much broader scope of
process control. The two glaring problems with ERP systems is that workflow often
requires a high level of customization that can be costly and take a long time to roll
out. ERPs were not designed to handle unstructured content such as documents.
As a consequence, additional software solutions were developed to plug these
gaps, specifically electronic document management (EDM) and business process
management (BPM). From these technologies evolved enterprise content
management (ECM), which combines document management and workflow. Using
these technologies, point solutions were created to address narrow, but significant
process weaknesses such as invoice management as required by the AP function.
Another issue that comes into play with ERP systems is their lifecycle, which can be
fifteen years or longer. Because of the scope and impact an ERP installation has on
an organization, they are somewhat like an aircraft carrier in that they are costly to
replace and take time to steer in a new direction. They also require a lot of support.
Carriers require a task force consisting of a variety of surface ships and submarines
each with a specialized mission so that the carrier operations are not hindered in any
way. Likewise, an ERP/Integrator Complex has evolved that seeks to perpetuate
the ERP universe. In essence, the major ERP solutions have spawned a symbiotic
support network that helps extend the usefulness and lifecycle of a corporations ERP.
2
to continue selling the ERP client additional ERP functionality. The bolt-on alternative
Automation
Solutions for provides not just a single instance of departure, but the start of a new pattern of
SAP behavior that makes it more likely other bolt-on solutions addressing other business
ecosystem needs are chosen instead of the solutions delivered by the ERP/Integrator
The ERP Complex.
Environment
To address this issue, the ERP/Integrator Complex has taken an if you cant beat
them, then join them approach. By partnering with or acquiring ecosystem providers
offering bolt-on point solutions, the complex is able to more quickly deploy tightly
integrated, cost-efficient software automation tools. Relying on open platforms, they
first attack the low hanging fruit to generate return on investment (ROI) and then go
after the more complex and harder to address process issues.
For existing ERP clients, the expanded scope of the AP ecosystem offerings from
the ERP vendors makes it harder to differentiate between solution types and where
best to invest in additional automation. For organizations shopping for an ERP
system, a thorough understanding of the extended automation ecosystem, both
internal products and those from external vendors offering bolt-on solutions, will
help define the purchase decision. Integration will always be a key component in a
purchasing decision and will be greatly affected by an organizations IT environment.
To gain complete and clear visibility throughout the entire AP flow, organizations must
minimize the paper and tightly integrate AP processes with their ERP.
3
Automation SAP solution extensions are SAP branded and marketed, meaning that they are on
Solutions for the SAP price list, carry an SAP warranty, and are supported by SAP, not just the
SAP partner.
From a user standpoint, the look and feel of an SAP solution extension is that of SAP.
SAP Universe
In fact, the user never really leaves SAP. Other tightly integrated solutions from
certified partners may also retain the look and feel of SAP and be written in SAPs
ABAP programming language so that the user cannot tell whether they are working
within SAP or the bolt-on solution. For the user that is accustomed to working in an
SAP environment this can be a critical factor.
In contrast, users who are new to SAP or have multiple ERPs may be more
inclined to look at an external best-in-breed bolt-on solution with its own look and
feel. Established users of SAP may also consider an external solution based on
their processing, functionality, usability and cost requirements. These solutions will
exchange data seamlessly with SAP, but the user works in a best-of-breed point
solution that delivers its own unified AP processing experience.
It is not uncommon for a company to have different instances of SAP or even have
SAP in one location and another ERP at a different location, often due to mergers
and acquisitions. Companies on multiple ERP platforms looking for global visibility
will need to look for a best-of-breed solution that works outside of SAP. While some
of these best-of-breed solutions may retain some of the look and feel of SAP while
providing global visibility across disparate ERPs, other external solutions provide
their own unique user interface.
4
Automation
Solutions for
AP Challenges and Automation Goals
SAP
The biggest invoice management challenges are related to an overreliance on people
AP Challenges and and paper-based processes, and the high number of discrepancies and exceptions
Automation Goals associated with such a system. While increasing electronic imaging remains a top
goal, followed by automated workflow, implementation of invoice imaging and ERP
application upgrades both show significant momentum.
Although invoice automation remains predominantly accuracy and efficiency driven,
momentum is building for broader application as a management information tool.
Emerging concerns related to this are discount capture and spend visibility.
Streamlining the AP process is vital in a tough economy where adequate cash flow
and greater control over payables are critical to maintaining liquidity and sustaining
business operations. The convergence of electronic invoicing and front-end invoice
imaging presents organizations with a single comprehensive solution that can
manage both paper and electronic invoices through a common automated process.
Once a formidable obstacle, the challenge of integrating new applications with ERP
systems is becoming less daunting. Most invoice automation solutions on the market
today integrate easily with systems on both the buyer and supplier sides, resulting
in secure and seamless data transfer, as well as streamlined processes and more
efficient workflows.
5
Automation The Case for Invoice Automation
Solutions for We believe AP automation is emerging as one of the key components of financial
SAP supply chain strategy. This is in large part due to the operational efficiencies derived
from automation that in turn drive cost savings. At an operational level, automating
Case for Invoice
Automation existing accounts payable processes can:
On a more strategic level, AP automation can unlock significant value from the
financial supply chain. This involves an understanding of the receipt-to-pay process
in the context of trading partner relationships. Added value is created by:
6
Automation Components of the Invoice Automation Universe
Solutions for
SAP The invoice automation universe is comprised of a number of different functional
components. Some vendors deliver functionality in an integrated, end-to-end
Invoice Automation solution, while others focus on specific components. The AP automation solutions
Universe
designed for an SAP environment discussed in this report all fall into the former
grouping.
Electronic Invoicing
Most invoice automation solutions come bundled with a vendor portal or can
be integrated with electronic data interchange (EDI) or with electronic invoicing
network that suppliers may use to submit invoices electronically by entering the
data manually, flipping purchase orders into invoices, or uploading documents
from their accounting systems. Electronic invoices are automatically validated in
accordance with buyer-defined tolerance levels and suppliers are immediately
notified of the exceptions they need to correct before the invoice is forwarded for
AP processing.
7
Automation Content Management
Solutions for The delivery, storage, management and disposition of electronic documents and
SAP index data is central to invoice automation and must integrate closely with the
clients ERP system in terms of access rights and the ability to provide seamless
Invoice Automation retrieval. Some solutions come bundled with a central repository, while others rely
Universe
on third party providers, and still others simply integrate with the SAP ArchiveLink
data repository.
8
Automation Tangible Benefits of Invoice Automation
Solutions for Clearly the benefits of invoice automation are tangible and achievable. Depending
SAP on the type of solution implemented, organizations can achieve a wide range of
benefits related to accuracy, processing times, discount capture, and labor costs.
Benefits of
Automation The biggest benefit of automating the invoice receipt process for a majority of
organizations is fewer lost or missing invoices. Invoice automation facilitates
immediate visibility and makes invoices actionable to all relevant parties,
irrespective of where they are located geographically.
Another significant benefit of invoice automation is quicker approval cycles. Our
research shows that automating invoice receipt combined with automated matching
and approval workflow can shrink approval cycle times from 23 days or more
to as little as five days. Approval of non-PO invoices can even be less. These
performance gains are driven by meta data extraction with OCR / IDR, immediate
invoice image visibility, automated matching, the elimination of manual data entry,
and ensuring that invoices are reviewed and approved in a timely manner.
The ability to accelerate approval times has allowed organizations to increase
their on-time payments as well as capture more payment discounts. Elimination
of manual data entry and paper-based routing of invoices along with the reduction
in discrepancies and exceptions brings another benefit to the equation, the ability
to reduce staff and processing costs. The ability to redeploy staff from low value-
adding activities to more strategic tasks like vendor relations, spend management
and incremental discount capture is an added bonus.
9
Automation Purchase-to-Pay and the Role of Invoice Automation
Solutions for
SAP Invoice automation plays a key role within the optimization of the Purchase-to-
Pay (P2P) process; in particular the advantages provided by an electronic invoice
environment and automated workflow matching. The goal is to create end-to-end
P2P Automation automated processes, also referred to as straight through processing (STP). The
promise of STP is that by eliminating human intervention, or touches, efficiency will
skyrocket and costs will drop precipitously.
The key is to eliminate as much paper as possible. Converting paper invoices to
electronic documents is primary, but also increasing the use of p-cards, driving
suppliers to an invoice portal and automating contract management can reduce your
reliance on manual processing. With the volume of paper processing reduced, it is
then possible to build out the automation within your P2P process.
10
Automation Best Practices for Touch-less AP
Solutions for
SAP Eliminating human touch points is a best practice in its own right. Once an invoice is
captured electronically, the question to ask is: Does this invoice need to be approved?
The ability to derive an automated answer by using business rules, which in turn
Best Practices trigger appropriate workflows, is the centerpiece of a touch-less AP environment. If
the answer to the question is no, the system will move the invoice into the payment
process. If the answer is yes, the system will route it to the approving party along with
any necessary decision support documents and information. Business rules, flexible
workflow and transactional transparency are essential.
For global organizations, there is an added layer of complexity related to localization.
This is because there are different legal requirements for invoice processing from
country to country. The question you must first ask is: Are we capturing the correct
data in every country? Once you understand your requirements, you will be able
to determine if a standardized solution is sufficient for processing in each country
in which you do business, or if service extensions are required from your solution
provider to capture all the information you need.
On a basic level, we have identified 15 areas that impact touch-less AP processing.
They are offered here to provide you with a checklist for evaluating both your needs
as well as the functional capabilities of any solutions you consider. They are:
11
Automation
Workflow Configuration Administrators need the ability to configure and
Solutions for change the business rules that determine how invoices will be routed to
SAP appropriate users for review and approval.
Alerts and Notifications The system should notify approvers of invoices
Best Practices pending their review and escalating invoices to managers if no action is taken
within a specified period of time.
Payment Processing The steps that buyers take to initiate, post and
execute payment, including preparation, processing, and submission of the
payment file to the financial institution need to be seamless.
ERP Integration Besides the exchange of transactional data between the
invoice automation solution and the ERP, this stage also includes integration
with and posting of the payments to buyers GL and accounting systems.
Remittance Management Sending the remittance information to suppliers
via the portal in a format of the suppliers choice is critical so that they can
easily transfer the remittance advices into their receivables systems.
Travel Receipts Paper receipt capture, either scanned or via a mail
service, and matching those items to submitted expense reports or credit
card downloads (in addition to providing confirmation to the employee),
must be integrated with workflow providing approval, exception/discrepancy
handling and delivery to AP.
Contract Management Leading edge firms are implementing automated
contract management capabilities (typically for handling non-PO invoices
related to leases, utilities and other recurring bills) to further reduce manual
processing.
Mobile Apps Delivering tasks and supporting documents to a mobile
device facilitates approval by executives who travel regularly. Mobile apps
are in the early stage of development and deployment but are expected to
increase significantly in popularity.
Business Intelligence There is a wealth of information gleaned from
the P2P process, which can be used not only to comply with regulatory
requirements but also to provide valuable business intelligence for strategic
spend analysis.
12
Automation
Solutions for
Key Performance Indicators
SAP
The accounts payable process has a number of moving parts and unless key
Key Performance
metrics are identified and performance measured against these indicators, it is quite
Indicators likely that something will fall through the cracks. To ensure smooth functioning,
key performance indicators (KPIs) should be measured periodically. KPIs
become all the more critical when a company is going through a new technology
implementation, so that measuring and comparing KPIs before and after an initiative
provides a good indication of the impact it had on the AP process.
Here are some key KPIs you should track periodically as well as before and after
any invoice automation initiative aimed at increasing your touch-less AP quotient:
13
Automation
Solutions for Basware Overview
SAP
Basware is the global leader in purchase-to-pay solutions with more than 1 million
users in over 60 countries. With Baswares Invoice Automation, organizations can
Solution Profile reduce the cost of buying and paying for goods and services and gain visibility
and control of its entire spending process by automating manual processes from
sourcing, contract management, purchasing and supplier collaboration to invoice
automation. Basware solutions and services enable firms to optimize working capital
and maximize the agility of finance operations throughout the purchase-to-pay cycle.
Solutions are distributed and implemented, either on site or as a service, in Europe,
the U.S. and Asia-Pacific through an extensive network of Basware offices and
business partners. The companys U.S. business, Basware, Inc., is headquartered in
Stamford, Connecticut.
Website www.basware.com
Founded 1985
Frequency of Upgrades Once per year for major releases, minor releases 2-3 per year
Solution Functionality
Basware solutions are delivered both as SaaS and licensed offerings. While Basware
works outside of SAP, it employs certified SAP interfaces to seamlessly integrate
with SAP and other SAP solution providers. Similarly, Basware has integrated with
over 250 other ERPs and financial systems in order to provide a single AP platform
for users in an organization regardless of whether they have a single SAP instance,
multiple SAP instances or a combination of SAP and other ERPs spread throughout
the various departments, business units, affiliated companies, etc. The result is a
single view of all AP activity company-wide.
14
In 2012, Basware launched Alusta, a cloud-based platform for business-to-business
Automation
Solutions for transaction collaboration. Alusta is Baswares platform that underpins and powers
SAP the B2B Cloud, an open, secure and global commerce ecosystem for buyers and
sellers that streamlines, optimizes and accelerates transaction collaboration, improving
purchasing and invoicing processes, and delivering enhanced supplier relationships
Solution Profile and financial performance. The Alusta platform introduces many new features
including an improved GUI with single role based user interfaces across all P2P and
O2C processes, an updated mobile client for mobile phones and tablets including
Apple iPhone, iPad, Android and others, real time social collaboration, multi-tenant
SaaS packages, neutral network connectivity, and enhanced reporting.
Basware also has one of the largest e-Invoicing networks in the world. Baswares
Open e-Invoicing Network is a B2B transactional platform thats been connecting
millions of businesses worldwide for over a decade. It seamlessly connects with over
130 international e-invoicing platforms, making it the largest inter-operator network in
the world. In 2011 alone, the Open Network hosted more than 21 million transactions
from more than 550,000 active buyers and sellers.
15
increase or decrease at any point in the future. CloudScan is yet another way invoices
Automation
Solutions for can be captured. CloudScan allows customers to download a self-scanning capability
SAP in minutes enabling them to do local scanning before sending invoice data to the cloud
for data capture and validation.
Solution Profile
Vendor Portal Functionality
Baswares solution supports a vendor portal where suppliers can submit invoices
electronically. It will also validate all invoices based on any number of criteria, system,
or client requirements according to business rules. Notifications can be completely
automated and are usually sent by the clients email system. All data both paper
and electronic invoices that a vendor may submit is standardized for the approval
process. The Basware Supplier Portal also enables vendors to create an invoice from
a purchase order, commonly referred to as a PO flip.
Workflow Management
Baswares robust workflow environment supports automatic, semi-automatic, or
manual processes per a clients needs. Administrators have complete control over
individual user access rights they can control what users may see, approve, how
much they can approve, along with any action that may be required of the user. During
the initial implementation phase, Basware embeds the clients business rules within
the system. Simple interfaces are then provided for the input and review of workflow
items. An email message with a direct web link can be provided to alert users that an
invoice needs attention. Automatic escalation, reminders, archives and back-up chain
features are all standard and available for use from day one. Any user may open an
online conversation regarding a specific invoice with any other user, and those chats
are stored with the record, making them part of that one invoices history. Basware also
provides unique mobile solutions users can approve invoices and check statuses
on any mobile platform (Apples iPhone or iPad, Android and other networks) via a
Basware app.
16
Automation
Solutions for
Basware Case Study
SAP
Invoice Automation Adds Value to Accounts Payable Operations
Case Study Worldwide at Global Leader in Power and Automation Technologies
Challenge:
As the global leader in power and automation technologies for utilities and industry,
this Fortune 500 company receives and processes millions of invoices each year in
countries all around the world. Trying to keep track of all these invoices and manage
accounts payable (AP) processes was a very labor intensive and time-consuming task.
With a vision to standardize processes, improve efficiencies as well as interface to their
SAP systems, the company embarked on its journey to automate AP operations.
Determined to achieve more effective invoice processing they conducted a thorough
evaluation of automated invoice processing solutions, and with input from several of
their locations worldwide, selected Baswares invoice automation solution.
For example, prior to implementing Basware, one of their country units manually
processed 380,000 invoices each year. Typically, invoices were manually entered into
the purchase invoice ledger, and routed internally to the appropriate recipient. They
were then checked and approved, forwarded to the Accounts Payable department
through internal mail, processed, verified, and manually booked and archived.
Solution:
To make these processes simpler, faster and more efficient, the company decided to
centralize the accounting processes of all 14 business units in this one country into a single
Shared Accounting Service Center and implement Baswares invoice automation solution.
Today, the Basware solution is used to scan in purchase invoices, validate the scanned
data, and incorporate the invoices into Baswares invoice automation system in one single
step cutting the initial processing time in half. After the invoices are scanned into the
system, they are automatically sent for review and approval and then transferred to the ERP
system for payment. The Basware solution enables them to adopt end-to-end electronic
processes, as well as ensures efficiency and reliability.
The flexibility of Baswares Invoice Automation system and its ability to adapt to local
variations of this companys AP processes enabled them to implement the solution in 18
countries to date with more coming on board over the next couple of years.
Results:
This company has gained significant benefits and productivity gains. With Baswares invoice
automation solution, they are now able to match invoices with purchase orders (POs), and
some countries are already achieving 60% fully automatic, straight-through processing.
They have gained significant productivity increases in processing invoices, and have
been able to accommodate higher invoice volumes each year since the solution was
implemented. The company also uses Baswares invoice automation solution to support
business decisions, such as supplier relationships. And they can now easily analyze their
supplier base, among other key areas, to determine which suppliers they should focus on
converting to e-invoicing.
2012 PayStream Advisors, Inc. info@paystreamadvisors.com www.paystreamadvisors.com
17
Automation
Solutions for Direct Insite Overview
SAP Direct Insite Corporation is a global provider of financial supply chain automation for
procure-to-pay business processes. The companys solutions and services aim at
Solution Profile delivering on-demand payment capabilities that are deployed fast, with minimal cost
and operational impact, and provide guaranteed benefits across the financial supply
chain. Direct Insites service offering for automating both accounts payable and
accounts receivable operations, Invoices On-Line (IOL), was introduced in 2000.
Website www.directinsite.com
Founded 1987
Solution Functionality
The Direct Insite IOL platform offers a comprehensive solution to manage purchase
orders, invoices, and electronic payments. The IOL solution is primarily offered as a
Cloud-based Software-as-a-Service, but is available for installation on client servers
as required by some government contracts. This solution sits on top of SAP (or
any other ERP), using a collection of web-services to exchange data with SAP in
real-time. If everything matches, it provides an end-to-end AP solution. If there are
exceptions, AP handles them in Direct Insite and in conjunction with the Direct Insite
workflow protocols without ever having to touch SAP. Thus, a seamless AP solution
is provided while a user is still able to tell if they are working in SAP or IOL.
Invoices On-Line delivers comprehensive functionality on both the buyer and supplier
sides. Buyers can issue and manage purchase orders, review and approve invoices,
and create schedules and pay invoices online via flexible payment methods.
18
Automation Suppliers can issue invoices and credit memos and respond to buyer inquiries with
Solutions for attachments. Strong audit controls and reporting ensure total visibility of transactions
SAP in real time.
19
Automation and most any other parameter. The scanned images are typically PDF or tiff files
Solutions for accessed via a web link and are also downloadable.
SAP
Workflow Management
Solution Profile IOL delivers integrated workflow functionality that allows invoices to flow through
preparation, review, and approval life cycles quickly and efficiently with users
assigned authority levels as invoice preparers, reviewers, approvers, and
payers. Online collaboration between buyers and sellers allows fast resolution of
discrepancies, with either party able to initiate line-item level notes and inquiries.
Direct Insites solution supports dynamic discounting, allowing buyers and suppliers
to work out mutually beneficial early payment terms. Buyers may configure discount
rates and submit proposals to suppliers against specific invoices. Suppliers may
view the invoices that are available for discounting, compare the discount rate
against alternative capital sources, and decide whether to accept the proposal or
submit a counteroffer.
20
Automation
Solutions for
Direct Insite Case Study
SAP
Siemens Global Shared Services
Case Study
Challenge:
Siemens Global Shared Services provides centralized Accounts Payable processing
for 54 distinct operating companies servicing over 100,000 suppliers. Initially, Siemens
processed 1.2 million paper invoices in 2007 for 26 business units on over 10 different
SAP systems. This volume increased to nearly 2.4 million invoices per year by the
end of 2011 with the migration of an additional 28 business units. Concurrently,
Siemens was dealing with approximately 50,000 supplier inquiries per month requiring
a sizeable call center. Siemens challenge was to find an innovative web invoicing and
self-service solution to increase the rate of electronic invoicing and decrease supplier
inquiries and related call center costs.
Solution:
Siemens conducted an extensive vendor analysis and selected Direct Insites
Accounts Payable Supplier Self-Service and eInvoice Automation Portal. Direct
Insite provides a globally hosted suite of web-based Accounts Payable Automation
and Procure-to-Pay service modules which are incrementally deployed in a phased
strategy. A significant plus was Direct Insites Supplier Self-Service Portal was already
integrated with common ERP platforms such as Oracle and SAP. SAP is the Accounts
Payable ERP environment of Siemens.
Direct Insites eInvoice and AP Automation service is important for supplier invoice
processing and self-service invoice/payment status lookup. With over 2 million
invoices per year, we needed a solution provider who would work closely with our
suppliers to adopt electronic invoicing and reduce paper invoice handling, said David
Hester, Vice President of Accounting and Finance for Siemens Shared Services, LLC.
Benefits:
Following a rapid 90 day deployment by Direct Insite, Siemens suppliers aggressively
adopted the supplier portal. Within six months from going live Siemens achieved a
40% decrease in supplier inquiry rate. Why? Suppliers gained self-service visibility
into their invoice and payment remittance information 7x24x365 days per year.
Suppliers are also able to download their invoice/payment data and submit electronic
inquiries online. Direct Insite automatically transmits and updates online self-service
inquiries to Siemens centralized CRM, Remedy.
Following the Phase 1 rollout, Siemens set a Phase 2 goal of achieving 80%
paperless invoicing through Direct Insites electronic invoicing service. Direct Insites
supplier on-boarding and enablement services promoted awareness and training to
Siemens 60,000 suppliers with the goal of converting manual paper invoices to one of
many forms of electronic invoice submission.
21
Automation Suppliers invoicing Siemens 50+ operating companies can submit electronic
Solutions for invoices through 1) web form entry, 2) copying a purchase order into an electronic
SAP invoice or 3) uploading invoice data from a spreadsheet. Suppliers can also submit
electronic invoices directly from their billing system through EDI and XML industry
Case Study standard formats. Direct Insite further provides rules-driven invoice validation
ensuring invoices are 100% compliant with purchase orders prior to posting to the
ERP.
22
Automation
Solutions for Dolphin Overview
SAP
Founded in 1995, Dolphin makes crucial business operations run better and smarter
for organizations using SAP solutions. Dolphins approach produces the right
Solution Profile solution faster for each customer through its unmatched experience in SAP. Dolphin
solutions improve business and IT performance, lower total cost of ownership,
and deliver a high return on investment. This focus allows customers who use the
Dolphin Process Tracking System (PTS) to process over ten million transactions
annually in accounts payable, accounts receivable and sales order management.
Website www.dolphin-corp.com
Founded 1995
Table 3 Headquarters Morgan Hill, CA
DOLPHIN
SOLUTION Other Locations West Chester, PA
PROFILE
Number of Employees >50
Solution Functionality
The Dolphin Process Tracking System for Accounts Payable (PTS-AP) certified
by SAP is primarily a licensed and installed solution, though some aspects can
be hosted based on customer needs. The system resides fully within SAP and
leverages SAPs Business Workflow Engine and ArchiveLink repository. This tight
integration means Dolphins solution has the look and feel of SAP as well an
important advantage for those already comfortable with the SAP GUI. Leveraging
SAPs security functionality, the system can be configured to limit access based on
sensitive data, organizational boundaries or functional responsibilities.
2012 PayStream Advisors, Inc. info@paystreamadvisors.com www.paystreamadvisors.com
23
Overall, the Dolphin Process Tracking System for SAP Accounts Payable (PTS-AP)
Automation
Solutions for provides users visibility and control within SAP. Additional features are added with
SAP every quarterly release, with forthcoming versions to include advanced reporting and
analytical capabilities as well as an enhanced mobile experience.
Solution Profile
Pricing and Implementation
Average implementation is six to eight weeks and is defined by the project
complexity, non-standard requirements, unique preparation needs and the customer
implementation team. Pricing is on an a la carte menu, including licensing by
number of AP users, approvers and other elements related to transaction based
pricing. Because of Dolphins vast SAP experience, they are able to integrate users,
vendors and aspects of the AP ecosystem into SAP to deliver significant value
for their customers. Customers typically receive a full payback on the investment
within the first year of use. Users are provided with a full thirty days of project team
dedication after installation, and then they have the option of 24/7 or 12/5 support
models.
Since Dolphins solution resides within SAP, it interacts immediately with the master
and transactional data already in the system. It can auto-fill the indexing screen,
saving considerable time and reducing potential keying errors. The solution delivers
over 50 different validation tasks and three-way match capabilities to maximize
auto-post results with a high degree of accuracy. If auto-posting fails, the transaction
is routed via business rules to the appropriate AP team member. All electronic and
paper invoices have associated images; even EDI invoices can have a rendered
image of the data created to facilitate ease of use for exception handling.
24
Automation Vendor Portal Functionality
Solutions for The Dolphin vendor portal, powered by Taulia, is easily configured to meet customer
SAP requirements. Invoice details are securely exposed to facilitate supplier self-service,
including document images, invoice details and current status, and procurement and
Solution Profile remittance information. The portal permits the submission of disputes and queries,
master data change requests and electronic invoices, all tied back to workflow
within SAP. Vendors may submit invoices by means of a PO flip, and Word or Excel
documents can be uploaded and aligned to a standard invoice layout. The same
validation tools reside in the vendor portal as well as in the data capture functionality
so that non-compliant invoices can be immediately kicked back to the vendor with
exception reasoning. The portal also allows for two-way communication between AP
teams and vendors. Supplier self-service can eliminate non-value added tasks that
account for 15 20% of the typical AP clerks day.
Workflow Management
Transactions are routed automatically via workflow to the appropriate AP team
member as well as any approvers required to take action on un-posted documents.
AP users can quickly access invoices requiring their attention through the
InfoCenter, with the ability to prioritize the My Actions list for timely resolution of the
most important invoices. Transactions can be executed via the Dolphin processing
screen, or the user can quickly navigate to the relevant SAP transaction with all
entered data moving seamlessly to the FB60 or MIRO transaction.
For posted and blocked transactions, intelligent routing to Buyers or Goods
Receivers who can resolve exception issues can be designed. Ad hoc approvers,
designated coders and master data teams are all part of the Dolphin Process
Tracking Systems workflow capabilities. Access and administrator rights can be
built according to business rules as required by the customer. Existing hierarchies,
whether within SAPs HR module or external legacy systems, can be easily
configured for automated table population in PTS-AP.
Approval chains are built based on business rules. The solution either uses
established business logic to automatically route an invoice through the workflow
(and optionally by-pass AP) or AP can select an approver. Approval chains will
then be built until the invoice has satisfied all approval and authorization levels. No
posting can take place without the requisite approvals. Reminders and escalations
are part of the solution, and operate at two levels regular (days before reminders
and escalation) and express (hours before reminders and escalation).
25
Automation Reporting and Analysis
Solutions for
SAP Dolphins PTS-AP provides robust and easy to use reporting and analysis tool sets.
Advanced features allow AP users to track the current status of documents as well
as measure the performance of the process by analyzing transactions. The Dolphin
Solution Profile
InfoCenter is key, as its dashboard has viewing and manipulation capabilities so
users can specify their own report layouts with over 40 data fields available. Reports
are pre-determined or can be created ad-hoc. Standard SAP reporting functionality
exists for these reports. Suppliers are given rights to access their invoices through
the vendor portal and to perform reporting functions as well. Comprehensive audit
trails support the ability for full evaluations of authorizations, approvals, amounts
and many other audit requests both internally and externally. An optional Audit Self
Service tool is available to deliver complete document recovery for audit teams.
Insight into accruals is possible with the Accruals in Minutes reporting function.
26
Dolphin Case Study
Automation
Solutions for
SAP
The leading provider of information services for the healthcare industry follows its
roadmap to process excellence and automation in Accounts Payable.
Challenge:
Covering markets in over 100 countries around the world, IMS Health relies on
robust processes and innovative technology to support its Healthcare Measurement,
Consulting, and Analytics & Services business divisions. The team is constantly
striving to improve the delivery of exceptional service as it tracks more than 80% of
global pharmaceutical activity annually for the pharmaceutical and related industries.
The team needed an Accounts Payable solution that would better support the
strategic imperative of exceptional customer service at IMS. Processing time-
sensitive invoices from the global supplier base was an increasingly daunting task.
Foreign language transactions posed a challenge for the centralization/outsource
initiative. They needed a partner who could deliver a solution that fit into their
new SAP Supplier Relationship Management module without missing a beat. The
roadmap for automating the capture of invoice data required accuracy, reliability and
interpretation intelligence to reduce papers grip and offer insight into the process.
Solution:
Optimizing the business process was critical to the success of the solution.
Leveraging the Dolphin Invoice Gateway, IMS utilizes Intelligent Document Capture
on digitized images and performs over 50 different data validations and line item
matching algorithms prior to posting the transaction hands-free. The intelligent
workflow solution routes transactions for exception handling, coding and approvals
based on the organizations optimized business rules.
The Dolphin InfoCenter delivers transparency to invoices throughout their life cycle
and addresses the needs of far-flung shared service centers and the centralized
corporate management team. Cycle time reporting highlights areas for improvement
across the business process.
Results:
Language issues and remote processing concerns evaporated when the solution
was installed. With a recognition rate of over 90%, the Dolphin solution delivers
significant Straight-Through-Processing success rates that previously required
manual processing. IMS has experienced tangible cost savings, greater control over
their cash flow, while mitigating the risk inherent in this important process.
27
Automation
Solutions for
ReadSoft Overview
SAP
Founded in 1991, ReadSoft is a global corporation on a mission to free businesses
Solution Profile everywhere from manual document handling by means of Document Automation.
The company has 10,000 customers with over 2 billion invoices processed annually
by its 7,700 AP customers. ReadSoft features two solutions: DOCUMENTS, their
OCR and data capture platform, and PROCESS DIRECTOR, their SAP integration
and workflow product. A solution oriented organization, ReadSofts sales force and
consulting services are structured to address the unique market demands of each
country in which it operates while providing a full level of support for customers and
partners.
Website www.readsoft.com
Founded 1991
Table 4 Helsingborg, Sweden - International,
Headquarters
READSOFT New Orleans - North America
SOLUTION
PROFILE Amsterdam, Bern, Copenhagen, Frankfurt, Helsingborg, Helsinki,
Kuala Lumpur, London, Madrid, Oslo, Paris, Santiago, Sao
Other Locations
Paolo, Stockholm, Sydney, Wroclaw - Intl.New Orleans, Chicago,
Raleigh - North America
Solution Functionality
ReadSofts solutions are sold both as a license and as a hosted service depending
on modules required. What is unique is that the solution is an SAP add-on it has its
own namespace inside of SAP for seamless integration.
28
The goal is to plug the gaps and fix loose connections in SAP to enhance the
Automation
Solutions for overall process. ReadSoft provides a single process platform for both frequent
SAP and occasional users that, because of its tight integration, enables clients the
choice of setting up workflow in SAP or ReadSoft. For clients with multiple ERPs
without a plan to migrate them all to SAP, ReadSoft will involve a Microsoft partner
Solution Profile
with technology that resides outside of SAP. DOCUMENTS incorporates multiple
security features; including an integrated single sign-on using Microsofts Active
Directory. ReadSofts SAP solutions use existing SAP security settings except with
the optional web application for front-end workflow access.
Major upgrades are delivered once a year, with the current version of both
solutions being 7.1. Upcoming versions of DOCUMENTS will include adaptive self-
learning for sales order detail lines, enhanced administration and AP reporting, as
well as more advanced document classification and form processing. PROCESS
DIRECTOR will include a new flexible web application with a more modern look
and feel. It will also include dynamic discounting, advanced p-card integration
to SAP, faster document upload, enhanced SAP functions, and advanced line
item matching and approval. ReadSoft is also building technology that will reside
outside of SAP to address the needs of clients with non-SAP ERP vendors.
29
Automation The system stops and focuses on the yellow and red fields, allowing documents to
Solutions for be swiftly routed into the workflow for processing. ReadSofts OCR uses contextual
SAP logic and learning capabilities to identify specific criteria and associated data that
is analyzed to ensure validity. DOCUMENTS is thus able to accurately capture
Solution Profile header data with line item details without the need for templates.
30
Automation reports on status, cash flow analysis, payment details, discount analysis, accuracy
Solutions for statistics, workflow processing, audit trail data, and cycle times. ReadSoft also
SAP provides extraction tools so the SAP report generating modules can be used
instead of or in conjunction with REPORTER. Though standard reports are
Solution Profile included, REPORTER also has tools that provide additional flexibility in working
with SAP. Vendors are able to create reports through the vendor portal. Audit
trails are facilitated by a date and time stamp on all activities, as is Sarbanes-
Oxley compliance, which also benefits from the security and segregation of duties
features incorporated in ReadSofts solutions.
31
Automation
Solutions for
ReadSoft Case Study
SAP
TransMontaigne Boosts AP Processing
Case Study An oil pipeline and terminal company, TransMontaigne, Inc. manages the acquisition,
distribution, transportation, price risk, and administration of refined petroleum products
throughout the supply chain. With a cost focus approach, the company delivers
maximum efficiency and supply to large fuel consumers such as FedEx and PepsiCo.
However, the dynamic efficiency of its distribution solution was absent from its AP
department because processors suffered from low visibility and limited processing
control.
Discovering a Solution
As a company that strives for excellence in everything they do, TransMontaigne realized
they needed to implement an AP automation solution to address their processing woes.
They ultimately chose ReadSoft, a global leader in document process automation
because of the solution providers ability to deliver certified invoice processing within
SAP.
With a dedicated vision to streamline operations and increase productivity, ReadSoft
centralized TransMontaignes processing with its SAP certified invoice automation
solution. Creating instant visibility into the AP processing cycle, ReadSofts invoice
processing solution enables prompt scanning of all incoming invoices, followed by
automatic routing for coding and approval. The solution ultimately allows for faster
payments that can take advantage of vendor discounts and provides stronger controls
throughout the receipt-to-pay process.
Accelerated Processing
Within six months of implementation, TransMontaignes AP processing was achieving
record speeds as the cycle time on an invoice dramatically dropped 25 days. With
invoice processing speeds accelerating, 1099s were processed in two days versus
half a month. In addition, faster payment cycles allowed the company to begin taking
advantage of supplier discounts for the first time.
32
Automation
Solutions for SAP Overview
SAP
With headquarters in Walldorf, Germany, SAP AG is the market leader in enterprise
Solution Profile application software. With more than 55,750 employees worldwide, SAP has
locations in over 75 countries and counts among its customers many of the global
Fortune 500 organizations.
SAPs mission is to help companies of all sizes and industries run better, empowering
people and organizations to work together more efficiently and use business insight
more effectively to stay ahead of the competition. Aiding in its customers efforts to
remain nimble and competitive in their industries has positioned SAP among the
leaders in this market space.
Website www.sap.com
Founded 1972
Table 5
SAP Headquarters Walldorf, Germany
SOLUTION
PROFILE Other Locations Offices in more than 75 companies worldwide
Solution Functionality
SAPs well-respected and renowned expertise in designing end-to-end solutions
that manage, automate and build efficiencies in business processes for customers
affords it the opportunity to form business partnerships with innovative companies
that focus on improving front-end business workflows. While SAP has formed many
partnerships, only a handful of partners have solutions that are resold by SAP as
solution extensions to SAP software. Developed by independent partners, solution
extensions integrate easily with SAP software, offering customers cross-solution and
cross-industry functionality that complement SAP offerings. After meeting exhaustive
functionality and integration testing requirements, solution extensions are resold by
SAP as SAP-branded offerings, fully supported and marketed by SAP.
SAP and OpenText have a 20-year history of co-developing solutions, due to
OpenTexts expertise and leadership in content management. SAP and OpenText
address a wide range of ECM needs including end-to-end invoice management
33
with SAP Invoice Management application by OpenText, a solution extension for
Automation
Solutions for purchase-to-pay, automates the entire front-end and back-end document and data
SAP management processes for customers. OpenText was recently awarded two SAP
Pinnacle Awards in the categories of Software and Support. The Pinnacle Awards
are handed out yearly as part of SAPs premier global partner recognition program.
Solution Profile
The awards spotlight SAPs most outstanding partners who excel in developing a
partnership with SAP and in growing their mutual business by helping customers run
better.
Coupled with this is SAPs recent acquisition of Crossgate, a former solution
extension that facilitates the secure electronic interchange of documents and data
between trading partners.
34
application by Open Text provides a secure and compliant document archive while
Automation
Solutions for enabling a 360-degree view of invoices and supporting documentation. Invoice
SAP images are automatically linked to the appropriate SAP document as well as
immediately accessible through delivered reporting. Streamlining both the storage
and management of mission-critical data vastly improves the ability to retrieve
Solution Profile
invoices and related supporting documentation.
Workflow Management
With an understanding of the life cycle that documents follow, SAP Invoice
Management was designed to provide a solution that affords businesses a highly
visible process that automates and streamlines the creation, management,
collaboration, monitoring, routing and archiving of documents. Using technologies
like OCR and intelligent character recognition (ICR), data is captured from
documents and checked for accuracy and integrity. The end result is a document
workflow free from the potential of human error and that solves a businesss need to
collect, retrieve and use data intelligently.
Travel Receipts
When traveling, employees often are required to manually submit receipts to AP
through the mail. Approval requests are typically submitted without the approver
having access to the receipts. This disconnected process can result in unnecessary
time being expended by the traveler, the approver and the accounts payable
department. Utilization of a manual receipt process not only requires expensive
courier costs but the opportunity for travel fraud is significantly increased. With the
SAP Travel Receipts Management application by OpenText, the manual receipt-
submission process involved with travel expense statements is streamlined and
automated. SAP Travel Receipt Management includes an optional OCR that allows
for the automatic classification of expense documents and then utilizes intelligent
extraction to populate line items based on type of charge. Images are automatically
linked to specific line items thereby eliminating the need for manual matching and
providing approvers with the ability to approve the charges, not just the activity as
can happen when paper receipts are sent to AP. It also provides extensive audit
reporting to enable control and blocking fraud. Once approved, expense statements
must be posted and with SAP Travel Receipt Management, the report showing trips
and images is directly assessable from the FI Document pull down menu, not so
with standard SAP TM. And with mobile-capture functionality, smartphone users
can better manage their travel plans and instantly submit receipts for reporting and
approval needs.
35
Automation
Solutions for
SAP Case Study
SAP
Malaysia Airports Streamline Invoice Processing with
Case Study
SAP Software
Malaysia Airports Holdings Berhad (MAHB), headquartered in Sepang, Selangor,
Malaysia, is involved in the management, operation, maintenance and development
of airports. With 7,000 employees, MAHBs annual revenues top $565 Million (for
more information about the firm, check out its website at www.malaysiaairports.com.
my).
MAHB employees were manually processing all paper invoices, an enormous
undertaking. The company chose the SAP Invoice Management application
by OpenText, option for OCR, to centralize its invoicing processes into a single
paperless system. Processing time and expense have been reduced. The
implementation was done within MAHBs SAP ERP application, so implementation
was completed within 6 months, a relative breeze.
36
Automation
Solutions for Selecting a Solution
SAP While the benefits of e-Payables are well documented, getting maximum benefit
from your automation initiative requires selecting a vendor that is a good fit for your
Selecting a Solution
organization. A thorough, critical analysis of the various technology solutions and the
functionality they offer in light of your organizations business needs is essential. To
help you with your due diligence, this section outlines the questions you should ask.
Company Overview
How long has the vendor been in business? When did they begin offering
payables automation solutions?
How long have they been working in an SAP environment? How tightly does
their solution integrate with SAP?
How many customers does the company have and who are they? What is
their experience in your industry?
How is the vendor funded? If it is a public company, read their prospectus.
How does the company intend to grow, and are there any mergers or
acquisitions on the horizon?
Solution Scope
How does the solution integrate with SAP? What is the level of SAP
certification for the solution?
What features of SAP does the solution use, and what features does it
replace?
How does the vendor handle integration with multiple instances of SAP?
What if they are not all the same version? Can the vendor also integrate with
other ERP solutions in addition to SAP?
Does the solution provider partner with any other vendors to provide
elements of their overall solution?
How does the solution integrate with SAP and other financial systems to post
approved transactions?
What security measures are incorporated in the solution?
Is the solution provider including any additional features and functionality in
forthcoming versions of the solution?
How long is the average implementation? What are the main factors that
define the length of your implementations?
37
Automation What level of customer support is provided after implementation?
Solutions for
SAP
Solution Overview
Solution Overview How does the solution accept invoices and other transaction documents into
the system? Does it provide for distributed capture?
How are paper documents converted to digital formats? How is scanning
performed?
What invoice formats or data standards (EDIFACT, ANSI, XML) is the
solution able to capture and process electronically?
What OCR, ICR or IDR functionality is available? Is it template based or free
form? What accuracy rates are attained?
How is validation and indexing handled? Can the user configure the
business rules for validation?
How does the solution handle storage and archival functions for captured
images and data? What search and retrieval capabilities are offered?
What payables workflow features are available as part of the solution? Are
automated escalation, reminder, alerts and back-up chain features included?
How does it route tasks to internal approvers and reviewers? What options
do administrators have to control individual user access rights?
Does the solution have the flexibility to support the customers existing
organizational structure, role hierarchies, and business rules?
Does the solution deliver a shared supplier network or portal where suppliers
can submit invoices? If so, how many suppliers are currently enrolled and
active on the network and is there any concentration of suppliers to your
industry?
How does the system notify suppliers of exceptions? Does it force them to
correct any exceptions? How?
How are paper receipts submitted for expense reporting? What control is
there from mail receipt to delivery to AP? Are paper receipts matched to
credit card downloads?
Does the solution include a reporting module? How many standard reports
are available? What reports are bundled with the solution? Can users
generate custom reports and save the queries for later use?
Can data from the solution be downloaded into third-party reporting tools for
further analysis?
What out-of-the-box payables-related metrics/KPIs does the solution
provide?
Does the system provide comprehensive audit trails? What tools/features
are available to facilitate Sarbanes-Oxley compliance?
38
Automation Final Thoughts
Solutions for The AP automation landscape, particularly in regard to touch-less processing is
SAP constantly evolving. At the same time, this technology has reached maturity within
the SAP ERP environment. We believe the following factors will continue to shape
Final Thoughts this marketplace, and organizations contemplating an invoice automation solution
within an SAP environment will need to take them into account:
Multiple SAP solution models will co-exist. There is not a single model
for an AP automation solution for SAP users. Solutions range from operating
completely within SAP to integrating so tightly with SAP that users cannot tell
39
Automation whether they are working in SAP or the bolt-on solution to integrated solutions
Solutions for that provide their own distinct user interface. There is also considerable variability
SAP in terms of solution focus. Some vendors focus tightly on specific aspects of
the invoice receipt-to-pay cycle, while others strive to provide AP automation
8 Building Blocks functionality as part of a larger procure-to-pay offering. Industry consolidation
notwithstanding, this diversity will continue.
Figure 7
THE EIGHT
BUILDING
BLOCKS OF
INVOICE
AUTOMATION
Invoice automation
starts with a vision
of touch-less AP
processing and
requires extensive
insight and planning.
40
Automation
Solutions for
About PayStream Advisors, Inc.
SAP
PayStream Advisors is a technology research and consulting firm that improves the
way companies plan, evaluate, and select emerging technologies to achieve their
PayStream Advisors business objectives. PayStream Advisors assists clients in sorting through the growing
complexities of IT applications related to business process automation with the goal
of making objective, analytical, and actionable recommendations. Wherever business
process automation technology is an issue, PayStream Advisors is there to help. For
more information, call (704) 523-7357 or visit us on the Web at
www.paystreamadvisors.com.
41