AP Automation Benefits - Before and After
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The document outlines the benefits of AP automation, highlighting improvements in efficiency and visibility for invoice processing before and after implementation. Key enhancements include reduced manual data entry time, real-time status visibility through a central dashboard, and streamlined workflows using graphical interfaces. Additionally, automation facilitates exception handling and simplifies audits, resulting in lower stress levels for users.
AP Automation Benefits - Before and After
- 1. AP Automation Benefits BEFORE AFTER
- 2. Data Entry of Invoices •Hours spent manually keying invoices into the ERP •Software identifies who invoice is from and intuitively collects data •Invoice shows up in dashboard AN ETERNITY 2 MINUTES BEFORE AFTER 02.00
- 3. Invoice Status Visibility •Have to dig through spreadsheets and paper files to find out the status of an invoice in both the approval and payment processes •Have to call around to find out why an approval is being held up •Can see what the invoice status is in the shared central dashboard •Quickly see where bottlenecks are CLOUDY OUTLOOK CLEAR SAILING BEFORE AFTER
- 4. Workflow •Workflows in ERP have to be manually coded •Rigid - each change requires reprogramming •User licenses are expensive •Easy to use rules-based graphical invoice workflow based on roles, vendors and accounts •You can intercept the workflow and modify it SOMEONE HAS TO CODE DRAG & DROP WORKFLOW BEFORE AFTER
- 5. Exception Handling •Paper or PDF Invoices, paper Purchase Orders, paper Goods Receipts, Outlook email messages have to be gathered and forwarded to the approver. •An information packet automatically combines the invoice image, a copy of the PO, the goods receipt information, a description of the error and notations. Push button to send. # DOCUMENTS HANDLED 6-12 1 # DOCUMENTS HANDLED @ BEFORE AFTER
- 6. Direct Material Invoice •Manually match PO and goods receipt to invoice in the ERP, matching on both the tiered pricing and delivered quantities •Figure out where to start, checking each element of each line on an invoice •Software instantly matches PO and goods receipt and sends to ERP •Automatically sends exception information packet to the approver HEADACHE PRODUCTIVE BEFORE AFTER
- 7. Indirect Purchases Invoice •Manually go through indirect material invoices, purchase orders and goods receipts to find a match •For stranded POs and goods receipts, find out why they haven’t been invoiced, or if they were paid without the PO and shipping receipt •Indirect invoices that don’t match are flagged in the central dashboard •Use drag and drop workflow to send the information packet to the proper approver 15 MINUTES OF EMAILS & PHONE CALLS 2 MINUTES MAKING A SELECTION BEFORE AFTER
- 8. “Posted Not Paid" Filing •File paper invoices that have been keyed into the ERP and are now waiting for payment to be made •Once the payment is made, collect invoices into a payment batch, or attach them to the check - back to the filing cabinet •Invoices are recorded as paid and the status is visible in the dashboard PAPER SHUFFLING REAL TIME STATUS BEFORE AFTER
- 9. Spreadsheets •Go digging for credits in the GL •Go to the ERP to see payment information •Sift through multiple spreadsheets •Everything is visible in the central shared dashboard •Includes invoice status, workflows, exceptions, and payment information SPREADSHEETS SHARED DASHBOARD BEFORE AFTER
- 10. Easier Audits •Juggling files in file cabinets and binders during vendor inquiries and audits •Collecting documents and creating summaries in spreadsheets •A step-by-step documented history of invoice transactions, including communications between internal staff and suppliers with time stamps, provides the basis of objectivity for enquiries and investigations. STRESS LEVEL STRESS LEVEL 10 - 5 - 0 - 10 - 5 - 0 - BEFORE AFTER