NEECOM Presentation

1. NEECOM Presentation • How Much Does It Really Cost to Process Your Invoices? • Receiving Invoice • Processing Invoice • Paying Invoice

2. Today’s Objectives • Managing Payment Requests Using Electronic Workflow • Status of Payment Requests and Processing • Are you able to manage the issues of processing invoices today? • How well equipped are you to manage your vendors? • Issuing Payments Cost Effectively • Defining a Business Model that Can Improve the Process • Q & A

3. Financial Resource Management • The Average Invoice Costs Organizations $10.15 per Invoice. • If you process 2000 invoices a week, you are spending ~$1,000,000 a year to support your vendor payments.

4. Paper Presentment Untimely Receipt and Inability to have Centralized Vendor Control Mail Room and Faxing costs Resource and Time-intensive Processing The Challenges of Processing Paper Fast Enough In Order to Take Advantage of Trade Partner Discounts Manual Data Entry Lost / Misplaced Invoices Fielding Vendor Calls for Dispute Resolution and Payment Status It’s 2:00 pm, Do You Know Where Your Paper Invoices Are? According to IOMA … The cost to process, review, approve and pay a single invoice is $10.15 per invoice.

5. Enterprise Remote Sites USMAIL Accounts Payable Postal System Mail Room Mail Room Receive and Review Paper Invoices Management of Paper Invoices Receive Paper Invoices

6. Financial Resource Management • How Many Vendor Calls Do You Field a Day to Resolve Invoice Disputes and Provide Payment Status Information?

7. Financial Resource Management • Telephone Tag Between Business Partners Can Result in Multiple Calls to Resolve Invoice Disputes. Each call costs $30*. • If 20% of your invoices result in dispute and each of these require multiple phone calls you could be spending another $1M. • 100,000 x .2 = 20,000 x 2 calls x $30 = $1.2M • * “Patience is a Virtue” JP Morgan Equity Research

8. Electronic Invoice Management • Invoices Entered into a Browser-accessible System • Designed to help Accounts Payable organizations remove paper from the process and electronically route invoices for review and approval • Invoices Received Centrally are Visible Across the Entire Organization Via Browser • Remote users maintain their vendor relationship without the administrative overhead • Browser-accessed “Payment Request Screens” Creates “Electronic Invoices” on Demand. • Invoices Automatically Uploaded to AP Systems

9. Rules-Based Work Flow & Approval • Can be configured to establish user-defined work flow, routing and approval business logic • Work Flow can be set-up to route documents by Supplier, Ship To Location, G/L Code and Cost Center • User Groups or individual ID’s within a User group can be assigned as recipients of documents using the Routing logic established • Further, the routing can be configured to support an approval process using similar business logic • By activating the approval logic, documents flow to predefined individuals once they are approved

10. Managing Vendor Inquiry Calls • Internet Portal infrastructure • Post pending payment and paid items status to an Internet Portal • Vendor’s provided access to the Portal • Eliminates payment status phone calls • Establishes baseline technology to address other issues related to invoice and payment processing • This application does not require business process change on the part of the Vendor – High adoption

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12. Summary • Provides the Infrastructure Required to Support an Invoice and Payments Status Portal • Browser-based platform designed to enable payers to “push” invoice and payment status to their vendors or employees • Consolidates Invoice and Payment Data Across the Organization • Automated Data Exports Into the Financial System of Record • Provides a “Financial Firewall”

13. Check Fraud Protection Positive Pay LaserChecks Fax Payment Stream Deposit Advice ACH Email E-Payments Financial EDI Transition PlatformDual Payment Architecture • Take payment information from current financial, HR, IT, and Legacy Systems and provide payments as requested:

14. Paper Payments Cost and Resource to Create Cost of Delivery to the Recipient Cost of Overnight Delivery When Necessary Out-of-Process Check Creation Risk of Fraud Uncertainty of Delivery Manual Reconciliation Assessing Paper Payments NACHA Study indicates that the difference in direct costs for check vs ACH is $53/employee vs $4.30 per annum.

15. Paper Payments Because … Paper Payments Provide me the Added Float Certain Contracts Require Paper Payments Slow Technology Adoption by Recipients Recipients Require Paper Record of the Transaction Systems are Already in Place Payments are Low on the Process Efficiency Priority List Inability to Blend Paper and Electronic Payments Process Why Perpetuate Paper Payments?

16. When You Can - Eliminate the Paper • If Contracts or Situations Allow - Migrate from Paper to Electronic • Single file to accommodate both paper and electronic • Cost savings from paper to electronic • Remittance delivery by email, fax, web or paper • Reduce risk of fraud • Better funds management – trading partner negotiation of settlement date • Improve partner relationships

17. Check Fraud Protection Positive Pay LaserChecks Fax Payment Stream Deposit Advice ACH Email E-Payments Financial EDI Laser Check to Electronic

18. Laser Check to Electronic Benefits in addition to direct cost reductions: • Eliminates lost and stolen checks and stop payments • Checks are ten times more likely to be lost or stolen then an ACH payment. • Eliminates mail and/or courier service for delivery of checks • On average over a dozen people “touch” a check

19. Electronic Remittance • Most organizations with electronic payments still print paper remittance or addenda. • These organizations typically have different systems to run the ACH and the paper printing processes.

20. Check Fraud Protection Positive Pay LaserChecks Fax Payment Stream Deposit Advice ACH Email E-Payments Financial EDI Electronic Remittance

21. Electronic Remittance • According to NACHA, it costs $98/yr to print weekly pay stubs for one employee. • If you have 3,000 employees and you layer in the additional processing and mailing costs, it will cost more than $500,000 to print stubs every week. • Electronically e-mailed remittance cost nothing for organizations with e-mail and PDF capabilities.

22. Large Industrial Company To Reduce Corporate Risk, Improve Credit Position and Control Enterprise Liabilities through a Single System Big Business Payments Processing with Remote Print Capabilities From a Single, Consolidated Payment File • Central control of payment initiation with remote check printing – 10 locations; one payment file • Consolidate Lawson HR and JD Edwards AP files • Translate JDE OneWorld in ASCII • Automatic bi-directional bank data management

23. Considerations to Think About • Time and Expense to Deploy • Integrity and Security of Your Financials – “Your Financials Firewall” • Integrating Disparate Vendor Invoice Files • Real-time, Collaborative Dispute Settlement • Ability to Integrate and Present Disparate Remittance Data

24. Conclusion • Benefits of an Electronic Payment Requests System • Accept and Process Electronic Invoice Data from Suppliers in the Format that you Prefer • Create New Efficiencies and Cost Savings Associated with Accounts Payable Processing • Improve Workflow and Enable Hands-free Processing • Eliminate Costly Calls While Providing Vendors Invoice and Payment Status • Improved Security • Lower Total Cost of Ownership

25. Questions?