SAP Document Access

Faster and Effective AP and AR Processes

Neeraj Gakhar Date: Thursday, 28th May 2009

The Challenge of Unstructured Content

Unstructured Unstructured 90%

Structured 10%

About 90% of business content is About 90% of business content is unstructureddriving higher handling costs unstructureddriving higher handling costs Operating costs and cost per transaction Operating costs and cost per transaction are too high, affecting profitability are too high, affecting profitability Business continuity and compliance are at Business continuity and compliance are at risk due to problems handling unstructured risk due to problems handling unstructured content content

Structured

Issues of unstructered documents in the context of your business processes

User
Where do I save what? Where do I maintain what? Where do I find the data related to the document? Where do I find what? Where are the documents related to my transaction?

SAP App 1 App 2

InterNet Filesystem Application Paper

SAP App 1 App 2 App 3 Filesystem InterNet

How do we organize the data & documents? How do we allow access to documents accross application boundaries? How do we collaborate with external and internal people? How do we track compliance and risk and manage the document lifecylce?

Infrastructure
How do we manage document growth How do we reduce dupplicates How do we optimize backup & restore times How do we relieve the Business Systems
SAP 2007 / Page 3

How can we provide Data & Documents when the users needs them

Business and IT problems Increasing costs and risks

Disconnected structured and unstructured information

Scattered Information

Low Process Efficiency

Regulatory Compliance

Increasing costs

Paper Based Processes

What does Sap Document Access offer?

Secure & Compressed Data Archiving

Scanning, Mail, Fax, Desktop integration

Connect: Document/Mail Archiving

360 degree view

Legacy decommissioning

Upgrade/Switch to SAP

Compliance Retention Management

Connect: Improving Operational Efficiency and Productivity

Scans paper documents, electronic documents and email, securely archives them and integrates them with SAP transactions and workflows Fast and easy access. Few examples below Accounts Payable: Increased Process Efficiency Taking Advantage of Cash Discounts Pain Difficult to manage high volume, paper-based AP processes Every invoice passes through several people for review/approval Lower efficiency, missed due dates, missed cash discounts for early payment and late fees Solution by SAP Archiving and Document Access Invoice document conversion to electronic format Integrating it with the SAP workflow as an electronic document Instant access to the invoice document Reduced paper transport times and AP process more efficient Works very well in Shared Services scenario as well

Typical Cost Savings by Automated AP Solution

Connect: Improving Operational Efficiency and Productivity

Scans paper documents, electronic documents and email, securely archives them and integrates them with SAP transactions and workflows Fast and easy access. Few examples below Accounts Receivable: Increased Profitability - Reduce AR outstanding & bad debt write-off - Improve credit line Pain Inefficient collection process long collection time, increased bad debt & eroded bottom line revenue AR dept needs info from many sources to solve problems, which prevent customers from paying Needs account info generated throughout the organization to facilitate timely collection Ends up manually pulling relevant documents from multiple departments & systems, query colleagues and wait for information to be faxed or sent Solution by SAP Archiving and Document Access Link order information as soon as it is entered or scanned into the system to corresponding customer info AR staff simply needs to enter basic customer information to access related information Reducing the time spent manually looking for information scattered across multiple systems

SAP Document Access by Open Text I Call It Data Archive Plus

Simple retrieval of Offline-Data

Online Data

In context of complete business process and online data

Online Data = Data in SAP database

Offline Data

Offline Data = archived SAP data (not in SAP database any more)

SAP 2007 / Page 8

Accounts Payable

SAP 2007 / Page 9

Accounts Receivable

SAP 2007 / Page 10

Document Access by Open Text Legacy Decommissioning:

Legacy System (Host) SAP Document Access COLD Module SAP Document Access by Open Text

Indices Print Lists, Documents

Enterprise Archive by Open Text

ts is L nt nts i Pr me to s ocu s ce d D Ac an

SAP 2007 / Page 11

SAP Invoice Management by Open Text

Invoice reconciliation done efficiently

Neeraj Gakhar Date: Thursday, 28th May 2009

Does this scenario look familiar?

CEO
Our cost of capital and material costs are too high.

CFO
My cost of accounts payables is not state-of-the-art and neither is our cost of goods purchased.

Financial Analyst
Use of cash discounts is low, cost of capital is rising.

Purchaser

Is this organization prepared to:

Increase process efficiency Reduce finance operating costs Make use of cash discounts
Accounts Payables
We spend more than 50% of our time responding to calls and emails from suppliers requesting state of invoice or complaining about late payment.

We could lower the cost of goods if we could make systematic use of to: cash discounts.

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

Accounting
We cannot say which invoices we have received across different departments and we have no control over the time-to-payment.
SAP 2008 / Page 13

Business and IT problems Increasing costs and risks

Cost per Invoice

Credit Rating

Low Process Efficiency

Regulatory Compliance

Inaccurate Reporting

No dashboard view of AP

Error-Prone

Scattered Info: GR, PO, Invoice

SAP Invoice Management by Open Text Architecture

EDI Crossgate

SAP PI (XI)
Non-SAP Backend
Inbox
(incoming mail / fax)

Invoice Interpretation

Invoice Monitoring

Collaboration

Invoice Closing

Payment

Post

FAX
PREPARE TRANSFORM MONITOR WORKFLOW MONITOR AP / FI

Paper

Scanning e.g. SAP Archiving by Open Text Enterprise Scan

Scanning Archiving

Interpretation Transform

Process all incoming invoices Automatically post invoices Process exceptions

Clearing exceptions Comments

Resolve exceptions Automatically post invoices

Payment

Post Post

Backend

OCR front-end (Dec 2008)

Invoice Cockpit

ERP

Archiving (HTTP Content Server) e.g. SAP Archiving by Open Text Archive Server

Backend

SAP 2008 / Page 15

Automated paper-to-post invoice management

Inbox
(incoming mail / fax)

Invoice Interpretation

Invoice Monitoring

Collaboration

Invoice Closing

Payment

PREPARE

TRANSFORM

MONITOR

WORKFLOW

MONITOR

AP / FI

Scanning Archiving

Interpretation Transform

Process all incoming invoices Automatically post invoices Process exceptions

Clearing exceptions Comments

Resolve exceptions Automatically post invoices

Payment

OCR front-end (Dec 2008)

Invoice Cockpit

ERP

SAP 2008 / Page 16

Automated paper-to-post invoice management

Inbox
(incoming mail / fax)

Invoice Interpretation

Invoice Monitoring

Collaboration

Invoice Closing

Payment

PREPARE

TRANSFORM

MONITOR

WORKFLOW

MONITOR

AP / FI

Scanning Archiving

Interpretation Transform

Process all incoming invoices Automatically post invoices Process exceptions

Clearing exceptions Comments

Resolve exceptions Automatically post invoices

Payment

OCR front-end (Dec 2008)

Invoice Cockpit

ERP

SAP 2008 / Page 17

Document processing duplicate check

Familiar SAP Look & Feel

Automated or Manual Data Entry

Immediate Data Validation

Early & Automated Duplicate Detection

SAP 2008 / Page 18

Exception processing price discrepancy

One-click Access to Supporting Information

Role-Based Process Options Transparent Role-Based Routing

Best Practices Exception Handling

Complete Process History

SAP 2008 / Page 19

Exception Handling Routines (Pre-configured)

SAP 2008 / Page 20

Automated paper-to-post invoice management

Inbox
(incoming mail / fax)

Invoice Interpretation

Invoice Monitoring

Collaboration

Invoice Closing

Payment

PREPARE

TRANSFORM

MONITOR

WORKFLOW

MONITOR

AP / FI

Scanning Archiving

Interpretation Transform

Process all incoming invoices Automatically post invoices Process exceptions

Clearing exceptions Comments

Resolve exceptions Automatically post invoices

Payment

OCR front-end (Dec 2008)

Invoice Cockpit

ERP

SAP 2008 / Page 21

Slide 22

Slide 23

Analytics and monitoring

Analyze Using Over 50 Criteria
Analyze KPIs with SAP Graphics

Your Choice of Reporting Currency

Total Process Summary

Full Access to SAP Functions

One-Click Access to Invoice Details

Complete Overview of All Processed Invoices

SAP 2008 / Page 24

Statistics and Graphs - Grouping

SAP 2008 / Page 25

Liability report

Analyze Liabilities for Accurate Accruals Supports Audit for Accrual Entry Full Access to SAP Functions

Assess Liability by General Ledger and Cost Object

SAP 2008 / Page 26

Benefits you gain throughout the entire invoice management process

Familiar SAP Look and Feel
Standard SAP tools are included for sort, filter, print, email, export Complete history of all processed invoices Summary overview of invoices, including the number of and value of invoices Audit history with comments At-at-glance reporting Approval history at a glance Approve or reject data Prior approvals Locate necessary supporting documentation, including invoice image, purchase order, goods receipt, SAP invoice, comments and complete history Process data Analyze data Comment on data Validate data Accurate team review, resolution and approval

Full Access to Familiar SAP Function and graphics (somewhat related to above) provide

One-Click Access To

User Friendly GUI/screens/dialog boxes make it easy to Role-based routing

Automated routing

Efficient processing

SAP 2008 / Page 27

What your Finance Shared Services Organization gains from SAP Invoice Management by Open Text
Cost
Cost of errors drastically reduced Costly focus and follow-up on numerous status calls and complaints from suppliers avoided Need to install more instances when adding countries avoided through localization

Risk
One place to monitor all invoices Platform for central service delivery, enabling selective process harmonization Transparent routing of invoices to process constituents across the corporation

Quality
Processing capacity grows with volume, without need to grow headcount proportionally Consistent service provision adhering to KPIs and SLAs
SAP 2008 / Page 28

Support large and/or distributed organizations with transparent routing

Invoice received in London, UK
Is scanned Workflow in SSC in Russia started

Shared Service Center AP clerk in Russia

Routes to buyer in US Routes to approver in Argentina 1

Buyer in US solves exception

2

Approver in Argentina gives OK

SAP 2008 / Page 29

Selected SAP Customers operating SAP Invoice Management by Open Text

SAP 2008 / Page 30

Thank you!
NEERAJ GAKHAR neeraj.gakhar@sap.com

SAP 2008 / Page 31