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Anatomy of AP AutomationSponsored by Anybill

April 17, 2013

Rick SwartwoodVP Professional Practice's

Institute of Financial Operations

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About Anybill

ANYBILL.COM

CONTACT:info@anybill.com

bchou@anybill.com

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• AP Automation at a Glance • AP Challenges and AP Automation Opportunities• AP Automation – Getting There• Business Case Considerations• Benefits of AP Automation• AP Automation Summary

Agenda

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• Does your organization currently utilize any type of AP Automation?

• YES• NO

Polling Question #1

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• Many Shapes, Sizes, and Moving Pieces

• Three Key Focus Areas– Receive Invoices– Process Invoices– Pay Invoices

• Often Looked at as Independent Pieces

AP Automation At a Glance

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• Greatest Value comes from a Connected Automation Strategy

Key Focus Areas of AP Automation

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• Key Challenges – Most invoices arrive on paper– Electronic Data arrives in different formats– E-mailed invoices require manual processing

• Key Automation Advantages– More efficient use of resources- especially mailroom– Standard data format for ERP integration– Low and no-touch invoice handling

Receipt of Invoices

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• Key Challenges – Paper invoices require much manual effort – Discrepancy resolution is time consuming – Top-down cost reduction pressure

• Key Automation Advantages– Electronic data provides efficient invoice management – Discrepancies are corrected at invoice receipt– Increased AP efficiency and reduced costs

Processing of Invoices

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• Key Challenges – Paper checks still the most popular & most expensive – Missed early payment discounts – Unpredictable cash out-flows

• Key Automation Advantages– Lower transaction costs– Increased accountability– Increased cash management capabilities

Payment of Invoices

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• Is your organization considering any type of AP automation activity?

• Yes – within the next 6 months• Yes – within 7 months or more• No • We already have AP automation in place

Polling Question #2

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• Key Tenant - Eliminate Data Entry – Suppliers send invoices to a 3rd party for data entry – Electronic data feeds from 3rd parties – Use of PO flip & portal technology– Use of Evaluated Receipt functionality – Use of P-Cards w/Electronic data feeds

• OCR and ICR capabilities – Invoices scanning eliminates data entry – Does not optimize mailroom processes

Automating the Receipt of Invoices

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• Key Tenant – Electronic Invoice Approval/Resolution – Prevent bad invoices from entering AP – Strong 3-way match validation rules– Proper GL Coding/Classification – Use of optimized 3rd party AP platforms – Workflow for invoice approval

Automating the Processing of Invoices

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• Key Tenant – Electronic Payment – Eliminating checks reduces transaction costs– Electronic payment ensures consistent cash management– Buyer initiated payments are catching on– P-Cards • Aggregate many payments into one• Electronic payment to merchants • Electronic invoice detail from provider

Automating the Payment of Invoices

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• Reporting – Process optimization requires data visibility & analysis

• Organization Size and Complexity – Different sized organizations require different approaches

• Technology Platform– An organization's technology platform may dictate one

direction or another • Process Connection – Automating individual AP pieces does not bring the same

value as an end-to-end connected approach

Other Automation Considerations

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• Process Improvements• Cost Reductions• Error Reduction• Greater Process Control• 24/7 Accessibility • Data Visibility • Improved Cash Flow Management • GETS PAPER OUT of the process

Benefits of AP Automation

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• What is the opportunity? – Is the process manual, error prone and costly? – What is the invoice volume?

• What processes need automating? – An end to end process – or just pieces?

• What is your technology platform? – ERP based – homegrown – or a mix?

• What providers match up with your requirements?– In terms of reputation, philosophy, experience with your

organization size and culture?

Business Case Considerations

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• Percent of invoices transformed from paper to electronic • Cost to process an invoice • Percent of “first pass yield” invoices • Redeployment of resources to more value-add tasks• Cash flow efficiency • Control efficiency

Measuring Success/ROI

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• What technology does your organization use for AP processing?

• SAP• Oracle• PeopleSoft, JD Edwards, Other ERP• Other/Homegrown

Polling Question #3

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• One size does not fit all – Each organization is unique and has different needs– Technology and other factors may dictate a specific course

of action• A well-connected end-to-end process add more value– The whole is greater than the sum of its parts– An approach that incorporates various options while

maintaining end-to-end continuity is best • Choice of service providers is key– Just as every organization is unique so are service

providers – look for the best fit for your organization

AP Automation Summary

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• You will be receiving an advanced copy of the whitepaper, Anatomy of AP Automation, after this webinar prior to its official release

• Sponsored by Anybill

AP Automation White Paper

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QUESTIONS?

CONTACT:info@anybill.com

bchou@anybill.com