Week 2: Use Cases in Finance, Procurement, and Project Management

Unit 1: Accounts Receivable

Accounts Receivable
Time-intensive tasks in accounts receivable

Incoming Payments ERP AR Accountant Result

Joanne
Customer payments ERP statement Manual processing: clarification, Cumbersome & time-
for invoices generation & clearing matching, and posting consuming manual processing

?
Missing info

Lump sum

Discounts

Exchange

Customer call

Example in Figures

100 payments received 30 payments posted by system 70 payments to be

Automation rate: 30%
from customers (full match of amount, invoice no., name) cleared manually
Manual rate: 70%
100% 30% 70%
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2
Accounts Receivable
Next level of automation with SAP Cash Application and SAP CoPilot natural language interaction

Payments SAP CoPilot

Bank Lockbox
Statements SAP Cash Application
Intelligent automation:
SAP S/4HANA Line Item Clearing
Posting on Account
Cloud
Payment Advice
PDF
Extraction

EDI PDF Scanned

SAP Leonardo Machine Learning
Documents
SAP Cloud Platform
Payment Advices
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3
Accounts Receivable
Current natural language interaction skills for time-intensive tasks in accounts receivable

SAP Fiori
Example sentences / dialog flows
App & Skill
Show me collection worklist for collection specialist
Process
Show me collection worklist for specialist
Collections
Show me collection worklist for specialist name
Worklist
Show me collection worklist items
Show me receivables for customer
Process
Show me receivables
Receivables
Show me open receivables
Show me correspondence history for customer …
Display
Show me communication history
Corresponde
Show me correspondence history for last year
nce History
Show me correspondence history
Query:
Desktop
Show me payment advice for customer ACME and
company code 0001
Manage Show me payment advice
Payment Read:
Advices Show me payment advice 04123456789
Create:
Create payment advice
Mobile Create payment advice for company code SAP
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4
Accounts Receivable
SAP Cash Application process

Bank statements/ Automatic clearing (rules)

Lockbox
1

Cleared
Payment Payment advice AR accountant Standard
clearing rules
2 payment
advice processing confirms proposal
Manual
clearing
Automatic clearing

Exceptions
Invoices AR accountant
confirms proposal

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

Accounts Receivable 1
Payment advice processing with SAP Leonardo Machine Learning

Identify payment Extract information

information in the application
Header information, table entries,
currencies, amounts

Computer vision
+ machine
learning

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6

Accounts Receivable 2
Automatic clearing with SAP Leonardo Machine Learning

Historical Information as Input Training Optimal Model

▪ Electronic bank statements
Note contains exact
▪ Accounting documents reference number
▪ Payment advices yes no

▪ Customer master data Invoice due since

▪ Bank master data < 71 days >= 71 days

▪ House banks
▪ Payer bank account information
▪ Clearing data for electronic
bank statement line items
Automatically select and arrange
decision criteria and values

Currently supporting 48 matching

criteria and growing
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7
Accounts Receivable 2
How to implement automatic clearing with SAP Leonardo Machine Learning

SAP S/4HANA SAP Cash Application

Cloud Cloud

Training
Historical clearing Machine-learning
process
documents training

Open bank statement

Inference items plus receivables
and Run invoice-matching
clearing service
Matching proposals
process
Matches autocleared,
proposals viewed over
SAP Fiori apps
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8
Accounts Receivable
Demo

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9

Accounts Receivable
SAP Cash Application business benefits

CFO and COO Head of Shared Services AR Manager

▪ Improve days sales ▪ Enhance team efficiency ▪ Minimize manual exception
outstanding (DSO) key ▪ Scale self-services with handling to reduce costs and
performance indicator (KPI) increasing customer volume refocus your experts on high-
▪ Adopt machine-learning – value tasks
Innovation
▪ Reduce the cost of finance

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10

Accounts Receivable
SAP Cash Application roadmap

Automatic Clearing
Cleared Payment

Manual Clearing
Accountant
Import Bank Merge Bank Payment Handle confirms proposal
Statements Classification Item Matching Differences
Statements (configurable)
Planned Planned Example: Payment
difference is too high
Import Lockbox
Files Future Services

Dispute Proposal
Payment Advice Service (Future) Dispute Case
Import Payment Extraction
Advices

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11

Thank you.
Contact information:

open@sap.com
Follow all of SAP

www.sap.com/contactsap

© 2018 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.