Mission Possible You Can Achieve Touchless Invoice Processing

Mission Possible
You Can Achieve Touchless
Invoice Processing
Kai Finck / October 25, 2016

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public
Today’s volatile world needs strong CFOs
transforming their businesses
Steward
Business partner

Successful CFOs transform their organizations
Maintain global regulatory compliance and controls of accounting
and tax standards, across currencies, languages, and industries
Engage with the business to jointly drive value, based on real-time
analysis of financial and operational business scenarios
Optimize finance processes for efficient and collaborative
relationships with customers, suppliers, banks, and government
authorities
Compliance
Operations
Business
partnership

74% of global transactions are
managed by SAP systems.

Often they are locked
within the enterprise.

Free the information flow between companies

Real-time collaboration of businesses

of all invoices are still paper based77%
of all invoices contain errors20%
of all pre-negotiated rebates expire50%

Automate collaboration with suppliers
Your
Company
YOUR
COMPANY
YOUR SYSTEMS
YOUR TRADING PARTNERS
million
companies
2.3+
Trillion
in annual commerce
€1
million
documents annually
(POs + invoices)
130+

Automate collaboration with suppliers
Your
Company
YOUR
COMPANY
YOUR SYSTEMS
YOUR TRADING PARTNERS
configurable
business rules
80+
providing real-time access
for your suppliers
Supplier portal

Ariba Network
Supplier portal and supplier mobile app
One-stop-shop for all portal suppliers
With the Ariba Supplier app, they can
access the same rich information they
see on your Web application:
 Monitor purchase order and invoice
activity
 Track, review, and pin purchase orders
and invoices to work on later (or for
follow-up)
 Confirm standard purchase orders at
header level
 Access content on Ariba Exchange User
Community

SAP S/4HANA is integrated with the Ariba
Network out of the box
Native integration
Customers Suppliers
”“ SAP S/4HANA has a native integration into the Ariba Network,
replacing the SAP ERP add-on and other integration methods.
Automated
technical setup
Error handling conducted
by business users
Businesses setup handled
by key user
Digital Core

In your Shared Service Center

Headcount intensity of
finance operations
Staff working on finance processes
Accounts
payable
Billing, AR, and CollectionsGeneral ledger Fixed assetsT&E
Source: Hackett Group

Steps of a shared services transition
”“ 95% of finance operations will be handled via
shared services or business process outsourcing
Form
organization
Change
management
Process
harmonization
Automation

Optimized invoice automation
Value engineering benchmarks
Invoice process per FTE
12,500
8,276
2,400
32,372
24,356
15,251
Top 25% Average Bottom 25%
Non-Ariba Customer Ariba Customer
2.9xhigher number of
invoices processed per FTE for
companies using Ariba procurement
solution as compared to non-Ariba
customers
Staff working in accounts payables

SAP S/4HANA Finance, OpenText & Ariba Network
Optimized invoice automation
SAP S/4HANA Finance
I n v o i c e p r o c e s s i n g t o p a y
Automated reconciliation and posting
Invoice
verification
Collaboration
and monitoring
Invoice
completion
Payment
Invoice
approval
SAP Invoice Management by OpenText+
The Ariba Network ensures a very high degree of automated invoice processing. However workflow approvals might still be required.
Having passed the Ariba Network business rules, invoices are received in the (central) ERP system. Required workflows are being triggered.
Finally the invoice is matched and posted in the (local) SAP ERP system.
€

Best-in-class invoice and payment
KPIsBest-in-class capabilities
 90% electronic invoices
 50,000+ invoices per FTE
 75% of PO and invoice lines
against item
master/catalog/contract
 90%+ touchless invoice
processing
 Discounts: 10% of spend
 SCF: 10% of spend
 Card: 5% of spend
 Net terms: 75% of spend
 Utilities DPO = 65 days
 60% to 80% reduction in
supplier inquires
 More than 90% of payments are
automated
 Electronic invoice submission
 Intelligent error recognition
 Predefined line items
 Pre-approval on PO and contract
 Pay electronically to maximize
payment window
 Rich payment remittance details
 Create a significant payment window
for working capital optimization
B
C
D
0 days
5 days
65 days
Invoice approval
Net terms
Payment delivered
Invoice and
capture date
Options: Discount,
SCF, or card
Payment delivered
Best-in-class
A
B
C
D
0 days
5 days
25 days
44 days
Invoice
capture
Invoice approval
Net terms
Payment
delivered
Invoice date
Typical

Supplier A/R teams revolutionize processes
with Ariba’s rich remittance information
Added value for Ariba suppliers
50% improved DSO
since open items are cleared, not just
posting to account
Staff working in accounts receivables
 Optimized credit analysis and cash flow from faster business
cycles
 Radically reduced effort for the most manual A/R task
 Lower transaction costs, improved data quality, reduced errors
and exception handling
 Faster close with less unallocated cash on account at period end
80%faster payment time
to clear the A/R ledger others

Strengthen the relationship
with your suppliers

Portal:
File upload and/or PO flip
System-to-system
Interactive e-mail order
and invoices
Full transaction set
Ariba Network
portal customer
PO, OC, INV
via e-mail only
Full transaction set, EDI,
cXML
Ariba Network
portal customer
Ariba light
enablement
Supplier self-
enablement
Ariba enablement
services
Maturity
Value
SAP Ariba solutions offer suppliers choice
on how to collaborate digitally

Light enablement for
Interactive e-mail
Light enablement is the standard enablement
method for all suppliers.
It allows buyers to digitally exchange core business documents by:
• Giving them a jumpstart in supplier onboarding
• Requiring no upfront enablement, change management, registration, or supplier fees
Light enablement, using interactive e-mail:
• Generally available since March 2016
• For all suppliers with purchase orders
• Suppliers receive orders, send confirmation and invoices using their existing e-mail and
Web browser
• Documents are business rule validated and electronically integrated to the buyer

Supplier enablement
”“ With more than 500 people in 9 locations around the globe
Ariba supports supplier onboarding and enablement.
Customer benefits
 Regional supplier enablement teams that speak regional
languages
 Mutually agreed onboarding wave planning (prioritized)
 Business and technical specialists working with
suppliers
 Customer engagement executive works with buyer’s
team during the entire lifecycle
 24x7 support across the globe

Supplier enablement
Smart and simple
 Embedded supplier analysis and
segmentation
 Real-time dashboard
 Simplified registration
 Real-time collaboration

You get e-invoicing compliance
out of the box!
Audited by
KPMG/Taj DeloitteStatus: June 2016
Paperless e-invoicing and tax compliant in 37 countries
1. Australia
2. Austria
3. Belgium
4. Brazil
5. Bulgaria
6. Canada
7. Chile
8. Columbia
9. Czech Republic
10. Cyprus
11. Denmark
12. Estonia
13. Finland
14. France
15. Germany
16. Greece
17. Hong Kong
18. Hungary
19. Ireland
20. Italy
21. Latvia
22. Luxembourg
23. Malaysia
24. Mexico
25. Netherlands
26. New Zealand
27. Norway
28. Poland
29. Romania
30. Singapore
31. Slovakia
32. South Africa
33. Spain
34. Sweden
35. Switzerland
36. United Kingdom
37. USA
On top, more than 30 countries (for example, Bahrain, Kuwait, Saudi Arabia, UAE) are supported with pro forma invoices.

Ariba Strategic Payables

Funders and payment processors
on the Ariba Network
Optimize DSO and AR management with
early payment or financing options
(dynamic discount and SCF)
Optimize DPO and AP management;
increase free cash flow and earnings before
interest, taxes, depreciation, and
amortization (EBITDA)
Mitigate liquidity risks with multi-
funder options for low-rate funding
Optimize the payment process: electronic
payments (SEPA compliant)
Payment
processors
SuppliersBuyers
Funders

Ariba Strategic Payables
Innovating and partnering to enable buy right, pay right
Support all invoices and funding scenarios, complementing SAP Ariba solutions
Payments
Ariba
Discount Professional
Indirect spend
Small and midsize suppliers
Supplier accepts to be paid by
buyer at prorated discount
prior to due date
Ariba
Supply Chain Finance
Direct spend
Large to midsize suppliers
Supplier sells approved invoices to
funder at a discount rate
based on buyer’s credit worthiness
Electronic payments to suppliers with
the ability to track and trace payment
status and provide rich remittance info
All spend
All suppliers

Key takeaways
 Business networks are the future of B2B collaboration
 They allow the highest possible degree of automation
contributing to the success of shared service organizations
 They are part of SAP’s strategy to simplify processes and
make enterprises ready for digital businesses
 Payments and supply chain finance are logical extensions to
the Ariba Network

Thank you !

Mission Possible You Can Achieve Touchless Invoice Processing

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