TIS in the Finance Department

1. TIS in the Finance Department

2. Finance Challenges • Cashflow management • DSO v DPO • Visibility of information • Manage accruals • Resource management • Staff turnover • Risk, training cost, consistency • Vendor and Exception management • Vendor education – PO reference • Invoice duplication • Out-of-tolerance transactions • Invoice approval • No control, delays process • Compliance • Process audit, Management information

3. Accounts Payable Sub-Processes Source: BearingPoint 2007

4. Accounts Payable Sub-Processes 66% Where TIS can help Source: BearingPoint 2007

5. Vendor Analysis PO & Blanket Order EDI  TRANSACTION TYPE PURCHASING METHOD  EDI + Paper PO & Non PO  Paper Mainly Non PO

6. How the process works – Step One Volume Report Audit Digital Mailroom Post Receipt Scanning Document ClassificationInvoices Cheques Remittance Rejection Letters Fax Receipt Email Receipt

7. How the process works – Step Two Volume Report Statistical Reporting Audit Audit Digital Mailroom Data Extraction Post Receipt Scanning Document ClassificationInvoices Cheques Remittance Rejection Letters Fax Receipt Email Receipt Invoice Reader Freeform OCR Engine Tuning PO / Non PO Header, Footer & Line item Data Correction Self Learning Multiple Languages ERP System

8. How the process works – Step Three Volume Report Statistical Reporting Financial Reporting Audit Audit Audit Digital Mailroom Data Extraction Customer Rules Validation Post Receipt Scanning Document ClassificationInvoices Cheques Remittance Rejection Letters Fax Receipt Email Receipt Invoice Reader Freeform OCR Engine Tuning PO / Non PO Header, Footer & Line item Data Correction Self Learning Multiple Languages Vendor Validation Units Pricing Multi Currency/VAT Duplicate Invoice Check 2/3/4 way match ERP System

9. How the process works - Step Four Volume Report Statistical Reporting Financial Reporting Work in Progress Reporting Audit Audit Audit Audit Digital Mailroom Data Extraction Customer Rules Validation Workflow Post Receipt Scanning Document ClassificationInvoices Cheques Remittance Rejection Letters Fax Receipt Email Receipt Invoice Reader Freeform OCR Engine Tuning PO / Non PO Header, Footer & Line item Data Correction Self Learning Multiple Languages Vendor Validation Units Pricing Multi Currency/VAT Duplicate Invoice Check 2/3/4 way match Exception Management Approval Processing Discrepancy Resolution Vendor Management Multi Currency/VAT Resource Analysis ERP System

10. Solution Summary Early visibility of transactional data • System will scale in volume • and applications • Accounts Receivable • Customer Services • HR • others… • a) Operational • Maximise AP resource • Creates efficient exception and rejection handling • Reduces training • b) Business • Assists vendor education • Capitalise on early payment discounts • Vendor rationalisation Full audit of process Identifies duplicate invoices and fraud

11. Questions

12. How invoice reader works

13. Solution Overview Management Information Paper Invoice Reader solution EDI Customer Rules Email Throughput System Tuning Financial Reports Processed Data and Images Fax Exception Management ERP Master Data Approval Management Information Work in Progress Financial Reports SLA Statistics SAP GUI Archive Link Provides “Fully Featured” Web based access for remote workers Secure Web Access

14. Solution Overview Management Information Paper Invoice Reader solution EDI Customer Rules Email Throughput System Tuning Financial Reports Processed Data and Images Fax Exception Management ERP Master Data Approval Management Information Work in Progress Financial Reports SLA Statistics ERP GUI Image Repository ERP Provides “Fully Featured” Web based access for remote workers Secure Web Access

15. Scanners and Image Quality Kodak i1420 Kodak i660

16. Read the Invoice • Optical Character Recognition • Engine Comparison Algorithms • Field Level Engine Definitions • Dates • Amounts • etc...

17. Find the Invoice Data – Generic Invoices Edit Masks @@######## or RegEx ^(43|45)\d{8}$ • Freeform (Logic) Rule Sets • Identifying Field Candidates • Keywords • Logical rules • Expressions • Masks • Validations • Graphical rules • Tables • Groups • Different languages Keyword(s) Field Groups Validations Net + VAT = Total Amount

18. Find the Invoice Data – Specific Supplier • Rule Sets for Top Suppliers • Validation against ERP data • Specific data formats 20% of all Invoices Edit Masks Keyword(s)

19. Find the Invoice Data – Learning • Learn Fields that are not accurately recognised • Production Learning • Data characteristics are learned during manual data entry Learning Db

20. Validation Against ERP ERP Db • ERP Database Search • Validation against ERP data • Supplier identification • Purchase Order identification • Line-Item validation against open orders

21. Exception Management • Validate Exceptions against master data and logical invoice rules • OCR “on the fly” for easy capture of text • Automatic Validations against business rules • Remote Exception Management

22. Management Information • Dynamic Controller • Real time process management • Prioritise specific vendors • Promote business data • Statistical Analyser • Helps identify and educate • non-compliant vendors

23. Invoice Reader Financial Reporting • Vendor, PO, Non-PO, Invoice Number, Date, Nett, Tax, Gross • Earlier visibility of invoice data • Centralised resource reference • Benefits • Early visibility – manage cashflow effectively • Vendor education (identify non-PO culprits) • Early payment discounts • Spend analysis and vendor rationalisation • Identify payment duplication • Highlight potentially fraudulent invoice attempts

24. Invoice Monitor for Process Control • Displays the status of invoices, incl. discounts, escalations • Transparency of the process during and after the invoice processing • Access to the workflow history, which can be archived after the process as PDF • Dynamic reporting via the selection of invoices in the invoice monitor (can be saved as templates) • Integrated SAP-rights for the user access

25. Factual Verification of Invoices • Automatic identification of Factual Verification (based on email address etc.) • Coding templates can be saved • Electronic accounting stamp for cost centre, GL account, notes etc. • Access to SAP documents

26. Invoice Approval via Web or SAP GUI • Automatic identification and routing to relevant approver(s) • Access via WEB or SAP GUI • Approval on line-item level • Automatic posting after all approvers have confirmed