The document discusses enabling best practices for accounts payable automation. It begins with an agenda for the event covering various topics around AP automation. It then discusses challenges with current manual AP processes including time spent on physical filing, data entry, long processing times and lack of visibility. It promotes the benefits of AP automation in reducing costs, errors and bringing more control and visibility to the process. Key capabilities needed for effective AP automation are identified as multi-channel invoice capture, best practice workflows, system integration, analytics and mobility. The document advocates applying best practices to streamline the AP process.

1. 1
Enabling Best Practice for Accounts Payable
1

2. 2
Agenda
 Introduction
 Enabling Best Practice for AP Automation, Howard Boretsky, Managing
Director, Xcellerate IT
 Kofax TotalAgility - Smart Process Application Platform, Franck Letessier,
Senior Engineer, Kofax Australia
 The Benefits of AP Automation, Michael Lapolla, Associate Director,
Strategic Financial Solutions, Victoria University
 Lunch
 Driving Efficiency and Change in the Workplace, Helena O’Loughlin,
Financial Controller, Sims Metal Management.
 Questions and Wrap Up – Lucky Door Prize

3. 3
Are You In Control ?

4. 4
About Xcellerate IT
Automating Capture Solutions to over
90 Customers across Australia
4

5. 5
Other
Photocopier
Invoice
Receipt &
Logging
Mail RoomCoding
Data Entry
First Level
Approval
Second
Level
Approval
Accounts
Approve
To Pay Photocopier
5
Current AP Process - Manual

6.  Physical filing and retrieval of paper is time consuming
 Manual data entry is time consuming
 Processing times are too long
 Non AP workers heavily involved in the AP Process
 Manual interpretations and errors
 Requisitions occur after the event
 Receipting occurs after the event
 No tracking or visibility
 Manual reporting
 Current process will not scale with growth
 No time to work on the business
 Attention is on every document processed not just the exceptions
Common Challenges
6
Performance Impact of Current Practice
 Excessive, Costly Manual Paper Handling
 High Error Rates in Extraction of Key Invoice Data
 Lost and Duplicate Invoice Issues
 Hazy Visibility of AP Status
 Workflows Fail to Manage Exceptions
 Weak Internal Controls
 Ineffective Integration to ERP and LOB Systems

7. 7
TOP Priorities – Accounts Payable

8. Invoice Processing – how good is current practice?
Best-in-Class (20%)
Industry Average (50%)
Laggards (30%)
Cost & time to
process one invoice
$38.77 20.8 days
$15.61 9.7 days
$3.09 3.8 days
Monthly
cost
$77,540
$31,220
$6,180
Invoices
processed monthly
2,000
2,000
2,000
7

9. “Systems of Record”
are enterprise applications
designed for internal use
ECM
BPM
CRM
ERP
9
Connecting Customers with Your Processes
Kofax provides an essential
connection to
“Systems of Engagement”
generate real time,
information intensive
communications
Transform &
Simplify the
Business Critical
“First Mile”
of Supplier
Interactions
Resulting in an
Optimized Customer
Experience &
Greatly Reduce
Operating Costs

10. 10
Kofax TotalAgility
The world’s first unified smart process application development &
deployment platform

11. 11
5 Critical Capabilities for Accounts Payable Automation
1. Multichannel Invoice Capture and Extraction
2. Best Practice AP Workflow – Productive, Controlled, Adaptable
3. Effective ERP Integration
4. Analytics
5. Mobility
11

12.  Capture of invoice
 Paper, email, XML, EDI, mobile, any channel
 High-quality digital image
 Available in workflows
 Extraction of invoice information
 PO and non-PO
 Intelligent invoice recognition and online learning
 Supplier and header
 Line items and amounts
11
Multichannel Invoice Capture and Extraction

13. Best Practice Workflow: Productive, Auditable, Adaptable
 Productive
 Standardised, repeatable process
 Low level of human touch
 Efficient human touch, if needed
 Auditable
 Audit trail of every action
 Documented AP processes
 Adaptable
 Easy to assign/re-assign work, escalate, etc.
 Fast to expedite for discount capture, discrepancy resolution
13

14. 14
Effective System Integration
 Close integration of invoice images and
information with workflow
 Flexible exchange of AP information with ERP
and LOB systems
 Multiple ERP and LOB integrations
ECM
BPM
CRM
ERP

15. 15
End to End Analytics – Business Intelligence
 Historical – What happened and why?
 Data from invoices that have already been
paid and related processes
 Actionable – What’s happening now?
 Real-time or near-real-time data on invoices
currently in workflow
 Enable intervention to change course of
processing
 Predictive – All data analyzed to provide
visibility into future
 Determine next actions based on historical
trends, current process states, resource
availability, etc.

16. 16
Mobile Capture & Mobile Work
Capture any
document in any
format from any
device at any
location.
• Driver License
• Invoice
• Purchase contract
• W-2
• Tax form
• Paystub
• ID card
• Social Security card
• Lease agreement
Work anywhere,
anytime, any
device.
• Approval
• Escalation
• Confirmation
• Resolution
• Comment
• Prioritize
• Query
• Review

17. Enabling Best Practice
 Centralised processing of all invoices the day it arrives
 Disciplined culture of accurate PO creation
 Educate users on goods receipting
 Automate Invoice matching – Three way match
 Streamline exception processing - STP
 Simplify approval hierarchy
 Adjust business processes to give approvals priority
 Educate suppliers on Invoice structure requirements
17

18. 18
The value to your business…
Role Benefit
AP Staff/Manager
Improvements in operational efficiency and staff
productivity
Procurement
Improvements in spend analysis, better vendor
relationships
Central Finance
Cost Savings, improvement management of
cash flow and working capital
CFO
Confidence in effectiveness of internal controls
for ATO compliance
Business Operations
Focus on business operations rather than
invoice processing

19. Kofax TotalAgility Highly Rated
2012
Intelligent BPMS
Case Management
Frameworks
Kofax
Multichannel Capture

20. Franck Letessier
Demonstration

21. Michael Lapolla
Associate Director – Strategic Financial Solutions
Streamlining your AP Process
using Xcellerate IT

22. Who is Victoria University ?
 Dual sector University- HE & TAFE
 Federal, State Government funding & full fee revenue
 $450m Business
 47,000 Students (our customers), including around 15,000 International
Students (onshore and offshore)
 2,000 Employees
 $1b in total assets

23. 11 campuses –CBD and western
corridor of Melbourne.
Who is Victoria University ?

24. Our Financials - Users
 680 users of TechnologyOne
Financials
 Moved from 60,000 Invoices to
30,000
 Over a 5 year period, 2007-
2012
 90% Invoices received electronically

25. Accounts Payable – The Past
 60,000 invoices pa
 Under utilised Technology-automation & integration
 Manual processes
 Unclear end to end business rules - not looking at
the whole procure to pay cycle
 Time and effort to process financial information
 Lacking visibility of financial information

26. The Shift – plan, plan & more planning
 Over arching plan encompassing Procurement, AP & Credit
Card
 Procure to Pay Cycle Approach
 Invoice OCR/Scanning

27. The Shift – Planning, Planning & More planning
 Business Case-In house vs. Outsourcing
 Finance System- TechnologyOne Financials
 The Xcellerate IT OCR solution chosen
 Planning, development, testing and implementing cycle - 29 days
 Go Live date-1 October 2007
 Overall a very smooth transition

28. Data Capture Benefits - OCR
 Speed
 Accuracy
 Minimisation of manual key
strokes
 Streamlining and re-engineering
processes
 “Real Time” integration between
the OCR & Finance System

29. The Goals - Challenges
To rationalize accounts payable processes and
achieve cost savings:
 Reduce required man hours to process invoices
 Refocus roles concentrating on compliance (6
AP Staff)
Improve efficiency:
 Reduce time to respond to queries
 Reduce archiving time
 Reduce time spent on manual data entry
Provide a platform for further development
for:
 Workflow (authorization process)
 Enhanced displays and data entry screens
 Storage reduction both off-site & on-site

30. Biggest Achievement

31. A.P.Officer
A.P.Team Leader
Receive &
sort mail
Sort invoices
into Scan
batch types
Document to
be scanned?
Scan
invoices
Validate
invoice
Validation
Correct?
Create batch
importfile for
Finance 1
Manually
correctfields
Uploadfile into
Finance One
Matchinvoice
Invoice
needs
matching?
Is data
acceptable?
Correctthe
problem
PosttoLedger
Return to
originator for
correction
end
P.O.
Matches?
Perform drawdown
& generate back
order
Multiple
Allocation?
Perform CostCentre
dissection&
generate back order
Check
completeness
of the
documents
Documents
OK?
Overseas
Purchases
Processing
Contact
originator and
rectify
Return
un-scannable
invoice to
originator
Localor
Overseas
purchase?
Keyinto
Finance One
Paymentfor Goods
or Services
Return to
originator for
amendment
end
What Type of
Invoice?
CHECK
CHECK
CHECK
CHECK
Technology
One
(financials&
w/flow)
Xcellerate
(OCR)
Systems Legend
NAB
OnLine
File
unscanned
invoices
Yes
[98%]
Yes
[98%] Yes
[70%]
Yes
[70%]
No -
data error
[27%]
No -
data error
[27%]
Yes
[99%]
Yes
[99%]
Yes (P.O.)
[85%]
Yes (P.O.)
[85%]
No
[1%]
No
[1%]
No (non-P.O.)
[15%]
No (non-P.O.)
[15%]
No -
P.O. Error
[3%]
No -
P.O. Error
[3%]
Yes
[60%]
Yes
[60%]
No -
Invoice LESS
than P.O.
[39.8%]
No -
Invoice LESS
than P.O.
[39.8%]
No
[99%]
No
[99%]
Yes
[1%]
Yes
[1%]
No
[2%]
No
[2%]
No -
Missing
Documents
[5%]
No -
Missing
Documents
[5%]
No -
Invoice
Error
[5%]
No -
Invoice
Error
[5%]
Yes
[90%]
Yes
[90%]
Overseas
10%
Overseas
10%
Local
[90%]
Local
[90%]
No-
Invoice
GREATER
than P.O.
[0.2%]
No-
Invoice
GREATER
than P.O.
[0.2%]
Paper
document
[99.5%]
Paper
document
[99.5%]
Electronic
Consolidated
Invoice
[0.5%]
Electronic
Consolidated
Invoice
[0.5%]
Purchases Process Map
Data Capture (OCR) Stage 1 Manual Scanning

32. Stage 2 Roll out
 From manual scanning of Invoices to automated process
 Xcellerate IT on-line validation of Invoice data
 Validation of key Tech One data including:
 Supplier Number, Name, Address, Account Code, User Dept., Assigned User &
Invoice duplication
 Automatic export to TechnologyOne Financials of Invoices
 Drilldown facility within GL or AP transaction enquiry to view invoice image
 Push invoices from TechnologyOne Financials to users for approval or goods received.
 Advanced workflow rules developed adhering to policies and procedures
 Purchase Order vs non-Purchase Order invoice rules applied

33. Partnered with Technology One to
build, automate and improve
processes. These included:
 Auto Invoice matching-90%
 Invoice workflow across the
University
 Visibility of tracking invoices
 Enhance Process Transparency
 Invoice reduction from 60,000 to
30,000 through supplier & invoice
consolidation.
 June 2010 rollout of Xcellerate IT
Email Xtractor utility
 Automatic scan of PDF invoice
email attachments from nominated
mailbox
 Further AP invoice reduction by
shifting <$1,000 AP invoice into credit
card
Stage 2 Roll out

34. Purchases Process Map Data Capture (OCR) Stage 2
A.P. Officer
A.P. Team Leader
Originator
Unit of Measure = Invoices >$500
(all less than this MUST be processed
via ICMS Credit Card PMT/Recon process)
Receive &
sort mail
Sort invoices
into Scan
batch types
Document to
be scanned?
Scan
invoices
Validate
invoice
Validation
Correct?
Create batch
import file for
Finance One
Manually
correct fields
Upload file into
Finance One
Invoice
needs
matching?
Is data
acceptable?
Correct the
problem
Post to Ledger
end
P.O.
Matches?
Perform drawdown
& generate back
order
Multiple
Allocation?
Perform Cost Centre
dissection &
generate back order
Check
completeness
of the
documents
Documents
OK?
Overseas
Purchases
Processing
Contact
originator and
rectify
Return
un-scannable
invoice to
originator
Local or
Overseas
purchase?
Key into
Finance 1
TO BEPayment
for Goods or Services
What Type of
Invoice?
CHECK
CHECK
CHECK
CHECK
Technology
One
(financials &
w/flow)
Xcellerate
(OCR)
Systems Legend
NAB
OnLine
Originator
recodes P.O.
Automatch the
Invoice and
the P.O.
Request
originator
confirmation
Originator
confirm goods
received
Send workflow
advice to
originator
What to do?
Send workflow
alert to Finance
Delete Invoice
Invoice Less
or Greater
than PO?
Amend PO and
match to
Invoice
end
Send workflow
advice to
originator
File
unscanned
invoices
Amend minor
P.O. Error
Send workflow
advice to
originator
Accept & Code
the Invoice
Yes
[98%]
Yes
[98%]
Yes
[92%]
Yes
[92%]
No -
data error
[5%]
No -
data error
[5%]
Yes
[99%]
Yes
[99%]
No
[1%]
No
[1%]
No
[99%]
No
[99%]
Yes
[1%]
Yes
[1%]
No
[2%]
No
[2%]
No -
Missing
Documents
[5%]
No -
Missing
Documents
[5%]
No - Invoice
Error
[5%]
No - Invoice
Error
[5%]
Yes
[90%]
Yes
[90%]
Overseas
10%
Overseas
10%
Local
[90%]
Local
[90%]
Paper
document
[99.5%]
Paper
document
[99.5%]
Electronic
Consolidated
Invoice
[0.5%]
Electronic
Consolidated
Invoice
[0.5%]
Yes (P.O)
[85%]
Yes (P.O)
[85%]
Yes
[60%]
Yes
[60%]
Reject
Invoice
[2%]
Reject
Invoice
[2%]
Accept -
PO Exists
[83%]
Accept -
PO Exists
[83%]
Invoice LESS
than P.O.
[39.8%]
Invoice LESS
than P.O.
[39.8%]
Invoice
GREATER
than P.O.
[0.2%]
Invoice
GREATER
than P.O.
[0.2%]
No
[40%]
No
[40%]
Invoice
Matches
P.O.
[60%]
Invoice
Matches
P.O.
[60%]
No - Major
PO Error
[1%]
No - Major
PO Error
[1%]
No -
Minor PO
Error
[2%]
No -
Minor PO
Error
[2%]
No PO
[15%]
No PO
[15%]
Accept -
Need Coding
[15%]
Accept -
Need Coding
[15%]

35. Scan
Extract Validate
Release to
Workflow
via
Finance
System
Instant electronic
delivery (2-3 sec)
e-Transactions
Receiver
e-Transactions
Sender
Supplier A
Supplier B
Postal service
(2-3 days)
Finance
System
Finance
System
PDF or TIFF
Print
Post
Open and prep
pre-match
invoices
against PO
information
Hybrid Paper/Electronic System

36. • Control Paper Flow
• Reduce Manual Labour
• Integrate Electronic Invoices
• Enhance Process
Transparency
• Improve Data Quality + Workflow
=
Automate the
whole process
& deliver value
at every step!
Solution to Automate Accounts Payable

37. 37
Enhance Process Transparency
 Send receipt confirmations
 Trigger exception notifications
• Enhance Process Transparency
The objective is to ‘reduce inbound calls’ to AP

38. Return on Investment (ROI)
 Reduction in Manual data entry- 80%
 Better control over invoices – efficient process
 Reduced processing times
 Compliance to audit & risk governance
 On time payments
 Visibility of invoices
38

39. Accounts Payable Dashboard
Background
The Accounts Payable processes had numerous issues despite having a fairly mature level of
automation that included OCR and workflows. By identifying and measuring the right KPIs across the
end-to-end process, the AP team was able to identify areas of improvement.
Deliverables
 The timely implementation of the AP dashboard enabled measurement a shortlist of KPIs against
targets for improvement.
 The dashboard is highly visual and has improved transparency around AP performance.
 The dashboard measures financial and non-financial aspects.
 Expect that this will be a key tool to drive ongoing improvements at AP
39

40. Dashboard - Reports

41. 0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
% invoices with PO
Target 90%
0
0.5
1
1.5
2
2.5
3
3.5
4
Average months of credit cards not
aquitted
Target: 1 month
0
2
4
6
8
10
12
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
urgent
Scheduled
No of payment runs per month
Target: <3
urgent pm
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
13.0
14.0
15.0
16.0
17.0
18.0
19.0
20.0 Days to approve
invoices
Target:
2 days
0% 10% 20% 30% 40% 50% 60% 70%
May
June
July
Aug
Target
POs raised after invoice date
May
June
July
Aug
Target
Extent of early
payments (Target 0%)
Q1 Q2 Q3L Q4
0 1 2 3 4 5 6
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
5000
10000
15000
20000
25000
30000
35000
May June July Aug Target
Credit cards spend <$500
value
%
Days
Weighted average
payable days
0.0
10.4
20.8 31.2
41.6
52.0
Target:
45
days
Dashboard - Reports

42. Further OCR enhancements with
XcellerateIT
 Enterprise Mobility
 Mobile image capturing
Where to Next ?
42
Contact details:
Michael Lapolla
Associate Director – Strategic Financial Solutions
Michael.Lapolla@vu.edu.au

43. 43
AP Automation Case Study
Driving Efficiency and Change within the Workplace
Helena O’Loughlin
Financial Controller
Sims Metal Management

44. 44
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