Take a front-to-back look at the AP automation process including the drivers, particularly for medium to large organizations, of AP automation, as well as some of the business case considerations when planning an AP automation project. Rick Swartwood, Vice President of Professional Practices at The Institute of Financial Operations, dives into automation as interconnecting pieces which can be implemented and performed independently or as a single end-to-end business process. You'll learn AP automation's effects on the following: - Mailroom - Invoice Preparation - Data Entry - Invoice Approval/Discrepancy Resolution - Payment Processes

1. Connected at last.
Anatomy of AP Automation
Sponsored by Anybill
April 17, 2013
Rick Swartwood
VP Professional Practice's
Institute of Financial Operations

2. About Anybill
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ANYBILL.COM
CONTACT:
info@anybill.com
bchou@anybill.com

3. Agenda
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• AP Automation at a Glance
• AP Challenges and AP Automation Opportunities
• AP Automation – Getting There
• Business Case Considerations
• Benefits of AP Automation
• AP Automation Summary

4. Polling Question #1
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• Does your organization currently utilize any type of AP
Automation?
• YES
• NO

5. AP Automation At a Glance
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• Many Shapes, Sizes, and Moving Pieces
• Three Key Focus Areas
– Receive Invoices
– Process Invoices
– Pay Invoices
• Often Looked at as Independent Pieces

6. Key Focus Areas of AP Automation
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• Greatest Value comes from a Connected Automation Strategy

7. Receipt of Invoices
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• Key Challenges
– Most invoices arrive on paper
– Electronic Data arrives in different formats
– E-mailed invoices require manual processing
• Key Automation Advantages
– More efficient use of resources- especially mailroom
– Standard data format for ERP integration
– Low and no-touch invoice handling

8. Processing of Invoices
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• Key Challenges
– Paper invoices require much manual effort
– Discrepancy resolution is time consuming
– Top-down cost reduction pressure
• Key Automation Advantages
– Electronic data provides efficient invoice management
– Discrepancies are corrected at invoice receipt
– Increased AP efficiency and reduced costs

9. Payment of Invoices
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• Key Challenges
– Paper checks still the most popular & most expensive
– Missed early payment discounts
– Unpredictable cash out-flows
• Key Automation Advantages
– Lower transaction costs
– Increased accountability
– Increased cash management capabilities

10. Polling Question #2
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• Is your organization considering any type of AP automation
activity?
• Yes – within the next 6 months
• Yes – within 7 months or more
• No
• We already have AP automation in place

11. Automating the Receipt of Invoices
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• Key Tenant - Eliminate Data Entry
– Suppliers send invoices to a 3rd party for data entry
– Electronic data feeds from 3rd parties
– Use of PO flip & portal technology
– Use of Evaluated Receipt functionality
– Use of P-Cards w/Electronic data feeds
• OCR and ICR capabilities
– Invoices scanning eliminates data entry
– Does not optimize mailroom processes

12. Automating the Processing of Invoices
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• Key Tenant – Electronic Invoice Approval/Resolution
– Prevent bad invoices from entering AP
– Strong 3-way match validation rules
– Proper GL Coding/Classification
– Use of optimized 3rd party AP platforms
– Workflow for invoice approval

13. Automating the Payment of Invoices
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• Key Tenant – Electronic Payment
– Eliminating checks reduces transaction costs
– Electronic payment ensures consistent cash management
– Buyer initiated payments are catching on
– P-Cards
• Aggregate many payments into one
• Electronic payment to merchants
• Electronic invoice detail from provider

14. Other Automation Considerations
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• Reporting
– Process optimization requires data visibility & analysis
• Organization Size and Complexity
– Different sized organizations require different approaches
• Technology Platform
– An organization's technology platform may dictate one
direction or another
• Process Connection
– Automating individual AP pieces does not bring the same
value as an end-to-end connected approach

15. Benefits of AP Automation
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• Process Improvements
• Cost Reductions
• Error Reduction
• Greater Process Control
• 24/7 Accessibility
• Data Visibility
• Improved Cash Flow Management
• GETS PAPER OUT of the process

16. Business Case Considerations
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• What is the opportunity?
– Is the process manual, error prone and costly?
– What is the invoice volume?
• What processes need automating?
– An end to end process – or just pieces?
• What is your technology platform?
– ERP based – homegrown – or a mix?
• What providers match up with your requirements?
– In terms of reputation, philosophy, experience with your
organization size and culture?

17. Measuring Success/ROI
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• Percent of invoices transformed from paper to electronic
• Cost to process an invoice
• Percent of “first pass yield” invoices
• Redeployment of resources to more value-add tasks
• Cash flow efficiency
• Control efficiency

18. Polling Question #3
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• What technology does your organization use for AP
processing?
• SAP
• Oracle
• PeopleSoft, JD Edwards, Other ERP
• Other/Homegrown

19. AP Automation Summary
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• One size does not fit all
– Each organization is unique and has different needs
– Technology and other factors may dictate a specific course
of action
• A well-connected end-to-end process add more value
– The whole is greater than the sum of its parts
– An approach that incorporates various options while
maintaining end-to-end continuity is best
• Choice of service providers is key
– Just as every organization is unique so are service
providers – look for the best fit for your organization

20. AP Automation White Paper
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• You will be receiving an advanced copy of the
whitepaper, Anatomy of AP Automation, after this webinar
prior to its official release
• Sponsored by Anybill

21. Connected at last.
QUESTIONS?
CONTACT:
info@anybill.com
bchou@anybill.com