How to increase ar and ap efficiency with intelligent document processing - Emagia Gia Docs AI
- 1. How to Increase AR and AP Efficiency with IDP
- 2. • Introduction • What is Intelligent Document Processing (IDP)? • Benefits of IDP • IDP Driven Efficiency Increases in: • Claims (Deductions) Processing • Cash Application • Credit Control • Accounts Payable • Customer Success Story • Conclusion • Your Questions Agenda
- 3. 3 Introduction Financial documents are numerous, vary widely in format (unstructured), and contain lots of information, making data extraction difficult. It is estimated by Gartner that 80% of financial data arrives in an unstructured form. Key Tasks in Processing Unstructured Data: a. understand the context and use of the data b. extract all and only the required data (even from handwritten documents) c. combine the context with the data d. input (keypunch) into correct ERP application for further processing Historically, processing unstructured data required human intelligence to cope with the wide variation. It included a high volume of repetitious data entry. IDP automates the handling of unstructured data.
- 4. 4 What is Intelligent Document Processing? Intelligent Document Processing (IDP) extracts & converts unstructured data into a usable structured, format for the next step in processing that data. It extracts all and only the required data. It utilizes cognitive Artificial Intelligence (AI) and other related technologies such as Machine Learning, Natural Language Processing, and Robotic Processing Automation (RPA). Source documents are scanned & data is extracted: • The documents are stored digitally • The data is available to authorized users anywhere in the world, 24/7/365 in digital form. Cognitive AI data extraction is faster, cheaper and more accurate than having humans read documents. Even Robotic Process Automation (RPA) doesn’t work as well with multiple unknown document formats. IDP accommodates multiple languages and currencies & delivers substantial increases in speed, accuracy and productivity
- 5. 5 Benefits of IDP in AR and AP Operations Substantially Increased Employee Productivity Lower staff attrition thru job enrichment Increased accuracy and quality of operations Faster response to Customers Speed, Productivity and Accuracy Improved Customer Experience/Satisfaction Increased Productivity Lower Cost Increased Revenue & Profit
- 6. 6 IDP Driven Efficiency Increases in Deductions Processing • Extracts required data from Vendor or EIPP Portal, Remit advice, email, debit memo, etc. and automatically create deductions to be routed for resolution • Key data includes customer number, invoice # & value, payment # & value, deduction value, dates, reason code, etc.) • Data arrayed in CSV file and fed into downstream processing • Establishes unique record for every individual deduction • Stores digital images of all documents
- 7. Extracts remittance data from multiple customer sources with varying formats, such as: • Customer Vendor Portals & your own EIPP Portal • Remittance Advice contained in Excel spreadsheets, PDF/tiff (tagged image file format), email attachments • Checks and check stub images and bank statement PDF’s • Lockbox image files in PDF, tiff, gif (graphics interchange format), other formats • Lockbox Data files in Excel, MT940, EDI 820 formats or BAI2 7 Constructs file (CSV or other formats) for input into auto-cash engine to apply receipts to correct invoices • Integrates with bank lockboxes, your own AR and Collection modules and ERP • Auto-Cash engine can yield 85 – 95% hit rate • Outperforms RPA when dealing with multiple unknown document formats IDP Driven Efficiency Increases in Cash Application
- 8. 8 IDP Driven Efficiency Increases in Credit Control • Extracts required data to conduct a credit investigation from the credit application (company legal name, address, tax ID, etc) submitted via Fax, email (including pdf files), postal mail, etc. • Automatically checks business licenses, OFAC list, credit bureau data, etc. to enable credit vetting • Establishes credit file for the individual company • Data arrayed in client specified format to facilitate review • Calculate a credit score and credit limit
- 9. 9 IDP Driven Efficiency Increases in Accounts Payable • Extracts required data from invoices delivered via Vendor Portal, EDI, email, postal mail, etc. • Automatically extracts data required to approve & pay an invoice (vendor name & number, PO #, invoice # & value, payment due date, prompt payment discount, etc.) • Retrieves applicable receiving document and PO • Establishes unique record for every individual vendor invoice • Data arrayed in CSV file and fed into AP system
- 10. IDP Feeds RPA & AI • Vendor Portals • EIPP Portals • Excel files • PDF/tiff/gif files • E-mail • Fax • Paper/hard copy • Lockbox data & files • MT940, EDI 820, BAI2 Trans. • Bank Statements • Credit Applications • Orders, Remits, Deductions CUSTOMERS, BANKS, CREDIT BUREAUS, ETC. Extracts & Converts unstructured data into structured data in a CSV File IDP • Accepts data. • Basic processing with ERP • Emulates human interaction with ERP. • Best with simple, repetitive, high volume operations RPA • Retrieve Credit info • Compute credit score and limit • Collections emails with dialogue • Auto-cash & small balance W/O • Routes deductions, etc., etc. AI DIGITAL ASSISTANTS (If needed) FURTHER PROCESSING (If needed) FURTHER PROCESSING 90 + % Automation 90 + % Automation 70 - 90 % Automation
- 11. 11 Challenge: Operates in 45 countries, 15 languages, 16 bank accounts Established in-house SSC while embarking on digitization of OTC Solution: Emagia IDP executed by AI Powered Digital Assistants for Claims, Cash Application, and Collections modules Customer Value Achieved: Cash Application: Auto-cash hit rate increased from: a. 10% to 80% in Australia b. 70% to 95% in France c. 50% to 80% overall Deductions: Resolution time decreased from several weeks to < one week Customer Success Story – Global Medical Products Supplier
- 12. Conclusion IDP in AR and AP Financial Operations: • Are used by many leading companies TODAY !! • Can increase productivity by 70 - 90% for manual operations • Enable faster response to customers • Improve the accuracy of transaction processing • Enriches jobs by reducing data entry, enabling more work on varied analytical and problem solving tasks. This will reduce attrition, the cost of hiring, and learning curve inefficiencies of replacement employees
- 13. Orders Credit Cash Application Collections Deductions Payments Invoicing If you have any questions or comments about this session, please let us know in the chat box or write to us at info@emagia.com