Invoice Automation: Key Component of Digital Transformation and Tax Compliance
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The document discusses the significance of invoice automation as a critical component of digital transformation and compliance for Infineon Technologies, facilitated through SAP Ariba's solutions. It highlights the benefits of improved procurement and finance alignment, efficiency gains, and the successful increase of electronic invoicing in various regions. Key contributors to program success include management support, a dedicated project team, and standardized processes.
![7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Infineon at a glance
Financials Market Position
Business Segments Employees
377 620 897 982
FY 13 FY 14 FY 15 FY 16
[EUR m]
Europe
15,176 employees
More than 36,000 employees worldwide
(as of Sep. 2016)
Americas
3,691 employees
Asia/Pacific
17,432 employees
34 R&D locations
19 manufacturing locations
Revenue Segment Result Margin
15.2%15.5%14.4%
9.8%
3,843
4,320
5,795
6,473
41%
11%
17%
31%
Automotive
(ATV)
Industrial Power
Control (IPC)
Chip Card &
Security (CCS)
Power
Management &
Multimarket (PMM)
Revenue FY 2016
# 2 # 1
Automotive Power Smart card ICs
# 2
Strategy Analytics,
April 2016
IHS Markit,
October 2016
IHS Markit,
July 2016
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Invoice Automation: Key Component of Digital Transformation and Tax Compliance
- 1. PUBLIC June 14, 2017 Friederike Hertenstein, Head of Innovation Go-to-Market EMEA/MEE, SAP Ariba Luis Barbosa, Senior Business Analyst, Infineon Invoice Automation: Key Component of Digital Transformation and Tax Compliance
- 2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Source and contract Request and buy Invoice and pay Indirect – non-merchandise Travel and expenses Labor and services Direct – merchandise End to end Enables source-to-pay integration Aligns procurement and finance Provides a one-stop shop for sellers Lowers IT costs Networked collaboration Connect to a global community of trading partners Discover, connect, collaborate, and gain insights Engage across a wide range of interactions Comprehensive Is not “one size fits all” Offers comprehensive capabilities Covers 100% of your spend and supply base Buyers Suppliers Connect your business processes with your business partners
- 3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Ariba Network – invoice automation at work Buyer ERP source system Approved invoices Status, visibility, and remittance Supplier Global invoice portal powered by Ariba Network Capture any invoice, from any source system (SAP, Oracle, PeopleSoft, JDEdwards, …) Minimum change management and increased AP capacity Deliver an invoice/payment status portal Greatly reduced supplier inquiries Provide full visibility and rich remittance Increased efficiency and standardized processes
- 4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Validating electronic invoices on the network Invoice ERP GST/VAT compliance PO & PO line match Buyer match (non-PO) UOM & SKU change Currency match Subtotal & total amount PO line change Line & total consumption thresholds Shipping & tax thresholds Invoice number Bill to/ ship to PO number Requestor (non-PO) Invoice date VAT/GST IDs Account coding Workflow Compliance Suppliers Buyer 98% touchless processing
- 5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public New potential from invoice automation # annual invoices per FTE Low-touch invoice processingHigh-touch invoice processing Manual • Paper • Fax • Data entry “Electronically manual” • E-mail • PDF • Scanning/OCR Electronic invoice • Integrated invoice: EDI, B2B, XML • Web invoice: PO-Flip feature, e-invoice • ERS (evaluated receipt settlement) Keys to success: • Multiple methods for suppliers to submit electronic invoices • Intelligent error recognition/ front-end validation • Preapproval on PO to reduce invoice workflow Invoice Working capitalPayment
- 6. Infineon Technologies Luis Barbosa (IFSSC BA BPS)
- 7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Infineon at a glance Financials Market Position Business Segments Employees 377 620 897 982 FY 13 FY 14 FY 15 FY 16 [EUR m] Europe 15,176 employees More than 36,000 employees worldwide (as of Sep. 2016) Americas 3,691 employees Asia/Pacific 17,432 employees 34 R&D locations 19 manufacturing locations Revenue Segment Result Margin 15.2%15.5%14.4% 9.8% 3,843 4,320 5,795 6,473 41% 11% 17% 31% Automotive (ATV) Industrial Power Control (IPC) Chip Card & Security (CCS) Power Management & Multimarket (PMM) Revenue FY 2016 # 2 # 1 Automotive Power Smart card ICs # 2 Strategy Analytics, April 2016 IHS Markit, October 2016 IHS Markit, July 2016 72017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.
- 8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public E-Invoicing: A journey around the world U. S. Dresden Kulim Warstein Regensburg Austria Malacca Singapore Munich 20122013201420152016 82017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.
- 9. 9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Key contributors for program sucess Management Support (Top down strong message) Dedicated project team (Finance, TAX, IT, Purchasing) Standardized processes Open to change Roll out strategy (pilot, training) 92017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.
- 10. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Moving from country to country with a standard approach 10set date Copyright © Infineon Technologies AG 2017. All rights reserved. › Ariba Network country compliant › Green light from each Local Tax and Finance department › Purchasing validation and training › IT setup (configuration and maintenance) › Identify pilot suppliers › On site Accounting training and briefing › Functional go live › First supplier wave alignment
- 11. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Facing known and unknown challenges › Multi-cultural environment › Tax complexity › Standardize processes › Suppliers IT integration knowhow › Fee model (especially in APJ) › Internal support 112017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.
- 12. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public What we achieved so far 122017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved. › Almost two thirds of the actual incoming invoice volume handled in EU › Target to have same ratio in Singapore by Sept 2017 › Ramp up Malaysia to one third by the same timeline › Focus on APJ ratio increase with further supplier waves deployed › Proactive and continuous improvement supplier enablement EUROPE 62% 63% 62% 65% 64% 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 Jan-17 Feb-17 Mar-17 Apr-17 May-17 No. of e-invoices No. of paper invoices e-Invoice %
- 13. 13PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Compliance Cost reduction Improved Quality › Pre-validated invoices › Digitally signed › Reduced invoice exceptions and error risks › ISAE 3000 Accounts Payable process certification The results Productivity Gains › Invoice automation › New tasks performed › Leaner processes › Faster invoice cicle time › Discount capture 132017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.
- 14. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Defined Strategy › Powerfull Management support › Centralized team and point of contact Lessons learned Full Commitment › Involve all partners actively › Strive for improvement Clear Communication › Fully informed and trained suppliers › Aligned escalation path 142017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.
- 15. 15PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Focus on next level of e-invoice experience Increase invoice automation ratio Roll out opportunities in other countries (Hungary, Indonesia, etc.) Enhance solution together with SAP Ariba (artificial inteligence, new features) 152017-06-14 Copyright © Infineon Technologies AG 2017. All rights reserved.
- 17. Questions?
- 18. 18PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ Public Please complete session survey Locate Session Click Surveys Button Select Breakout Survey Rate Session
- 19. Thank you. Contact information: Martin Jones, SAP Ariba martin_jones01@sap.com Luis Barbosa, Infineon Technologies Luis.Barbosa@infineon.com