The M&S Story - Automating Supplier Statement Reconciliation - Statement-Matching.com
- 2. Ellen Leith Daniel Kimpton PRESENTING YOUR SPEAKERS Sarah Cliffe
- 5. • The M&S Business Service Centre opened in 2003 • The Scope is, Procure to Pay (P2P), Sales to Cash (S2C), Record to Report (R2R), General Accounting, Fixed Assets, Property Accounting, Inter-Company, Inventory, Treasury Back-office, B2B (Business to Business) • There are 130 FTE currently in the BSC
- 6. • Number of invoices 4 million • Food and Clothing - EDI format • Goods Not For Resale – OCR format • Number of vendors – 8,000 active • SAP version 4.6, investigating SAP HANA • Structure of P2P - 38 • Invoice Processing Team • Vendor Management Team • Vendor Support & Compliance • Payments & Analytics
- 7. • Accounts Payable is largely a reactive process • Focus on getting invoices in to the system and paid on time • Dealing with high volumes of supplier queries and duplicates • Chasing business users to do their part properly • Build up of aged GR-NI balances • Month-end and cycle again • Being more proactive would enable M&S to improve their KPI’s
- 8. • Historically M&S have not completed Supplier Statement Reconciliations routinely • Prepared at Financial Year-end to satisfy External Audit requirements • Identified the need to introduce a business process to reconcile supplier statements proactively.
- 9. Reconciling supplier statements proactively has helped M&S:- • Improve our Payment on Time performance • Reduce supplier queries • Improve accruals and cashflow forecasting • Accurate Trade Payables balances • Release aged GR/IR balances
- 10. The process of checking supplier statements against your Trade Payables Ledger identifies:- • Missing invoices/credits • Mis-postings: • Invoices on ledger not on statement • Debits/credits wrong way round • Invoice number, date, amount and currency input errors (duplicate risks) • Potential duplicates • Problem vendors – High volumes of errors = Something wrong to fix
- 11. • Proactively reconciling statements will: • Identify discrepancies before they become issues • Resolve errors that cost M&S money • Ensure all credits are applied • Reduce supplier queries • Assure accuracy of Trade Payables balances • Support release of GR/IR balances
- 12. • Number of active vendors 8,000 • Number of invoices 4 million • Implement an automated supplier statement reconciliation process, with no increase in headcount • Solution must take M&S supplier statements and match the line level data to the line level data in M&S SAP • Solution to accept paper, PDF and excel statements and enable vendors to upload their own statements • Onboarding process to be simple and “big bang” • Chosen partner to be long term, like minded to build an on-going working relationship
- 13. • All Suppliers in scope; • Food • Clothing & Home • Goods Not For Resale (GNFR) • Automated daily file uploads from M&S SAP to Statement- Matching.com • Identified top aged Suppliers and key Suppliers, requested statements to support a pilot to prove the concept
- 14. • Member of Vendor Management team, identified as Super-User (SME) • Owned and developed the process internally within M&S • Developed training material to ensure rest of the team; • On-board with the concept of a statement reconciliation processes • Understanding of the end to end process to ensure a consistent approach • Opportunity to input into the final process and how the process would operate on an daily basis
- 15. • Smoothing of GR/IR release process (MR11) • Robust audit trail, supported by supplier reconciliations of the MR11 release process • Released £4.7m of GR/IR’s reconciling 300+ supplier statement reconciliations • Reduced the volume of aged invoices • Identified supplier invoicing issues to ensure a timely resolution
- 16. • Implemented a Supplier Portal initially for GNFR vendors; • View status of invoices including invoices rejected • View due date of approved invoices • “Drop” in statements to support a continual reconciliation process • Identify reconciliations through; • P2P Operational reviews • Balance Sheet reviews • GR/IR weekly review • All members of the P2P team to reconcile statements • Roll-out Supplier Portal to Food vendors (December 2018)
- 17. Increase the value of Accounts Payable Presenter: Daniel Kimpton
- 19. Dashboard – Key Reports & Statuses
- 20. List of Statements with Missing Credits
- 21. Missing Credit – Copy Request Process
- 22. Search Screen
- 23. Statement List
- 24. Fully Matched with Data Miss-Matches
- 25. Potential Miss-Posting’s or Duplicates
- 26. Reporting
- 27. Supplier Portal
- 28. My Invoices
- 29. My Payments
- 33. PROOF OF CONCEPT Free Proof of Concept for up to 10 vendors ~ We need the following:- 1. Invoice data in Excel (open items + 3 months paid) 2. Statements in Excel, PDF or Scanned Images 3. Attend online training (1 hr) 4. 4 week POC to see it working with your data.
- 34. PRICING Pricing comprises two components: 1. Monthly Subscription – Fixed monthly cost based on annual volume of invoices processed. 2. Monthly Statements Processed – Variable monthly cost based on volume of statements processed. Commercials: • 30 day rolling agreement • No minimum term, cancel at any time
- 35. Any Questions? Take advantage of a free Proof of Concept