One way to increase the efficiency in the payables process is to reduce the manual data entry of invoices. Self-billing or ERS is a strategy you can use to achieve this, but it can only be implemented with certain suppliers and in the right way. So how do you know which suppliers are the best candidates and how do you make it work? In this presentation from The Accounts Payable Tech Summit 2011, Leonardo Pucciatti, Payables Project Manager at Exxon Mobil will cover: • Selecting and analysing payables metrics to find suitable vendor candidates for ERS • Drawing up a matrix of roles and responsibilities – how exactly is procurement involved in your strategy? • What key lessons have Exxon Mobil learnt after over a decade of using ERS?

1. ERS / Self-billing
Let your suppliers do the work:
How to setup ERS / Self-billing with your most suitable suppliers?
AP Tech Summit
6th – 8th December
Leonardo Pucciatti, Payables Project Manager, ExxonMobil
Richard Slovak, ERS Center of Excellence Supervisor, ExxonMobil
This presentation includes forward-looking statements. Actual future conditions (including economic conditions, energy demand, and energy supply) could differ
materially due to changes in technology, the development of new supply sources, political events, demographic changes, and other factors discussed herein (and in
Item 1 of ExxonMobil’s latest report on Form 10-K). This material is not to be reproduced without the permission of Exxon Mobil Corporation.

2. Agenda
• Prague Payables Center perspective
• ERS / Self-billing
• ERS benefits
• ERS potential issues
• ERS in Prague Payables Center
• Case for change
• ERS CoE concept
• How to identify supplier?
• How to setup supplier to ERS?
• Success factors
2

3. Prague Payables Center
• ExxonMobil BSC Prague provides Payables services to ExxonMobil affiliates in 30 countries
• International environment, young population with high language skills
• Prague Payables Center covering 1.5M transactions annually
Payables sites
3

4. ERS / Self-billing
Evaluated Receipt Settlement (ERS) is a standard SAP process to produce invoices
on behalf of suppliers based on purchase order and goods receipt
Create and send
Procurement Purchase Order
Supplier Delivers goods & ERS Copy Invoice sent to Payment
services Vendor Received
Goods receiver Create Goods receipt
ERS Invoice Original ERS invoice
Payables
automatically generated electronically archived
4

5. ERS Benefits
Benefits for Customer:
•Reduce paper (no mail, no filing, long term eArchiving)
•Eliminate invoice processing ERS invoicing process
Paper invoicing process
•Minimize recycles for non-matching invoices
•Optimize Payables control step
•Prevent aged open items on liability account (GRIR account)
•Facilitate VAT treatment
Pre-check and scanning
•No change in the upfront PtP process Controls and troubleshooting
Invoice processing
Benefits for Supplier:
•Increase on-time payments
•Eliminate the risk of “lost” invoices
Helpline and payment
•Reduce costs for invoice handling and mailing
Troubleshooting and controls Payment and accounting
5

6. ERS potential issues
ERS is a great invoicing tool . . .
. . . if selectively applied
Potential ERS issues:
•Implementation cost not meeting benefits
•No timely and accurate goods receipts
•Frequent price updates
•Contract price not including all costs
•Supplier not able to reconcile payments
6

7. ERS in Prague Payables Center
• ERS adopted in ExxonMobil Europe since 1999
• Successful ERS expansion project in 2006-2007
• Challenging expansion after project close-out
• Expansion ownership was in Procurement
• Limited knowledge on ERS process and VAT implications
• Expertise on end-to-end PtP process necessary
• ERS end-to-end process split across organization
• Procurement identify ERS vendors and setup contracts
• Payables perform controls, troubleshooting and helpdesk
• Concentration of the ERS end-to-end process in one team
was the choice
7

8. Case for change
Weaknesses
•No clear owner of ERS end-to-end process
Procurement Payables
•No Procurement incentive to ERS expansion
•Identification of •Setup vendor
ERS candidates master •Significant training effort in Procurement
•Load contracts to •Check control
SAP reports •Limited tax knowledge in Procurement
•Interface with •Helpline
vendor and client •ERS invoice •ERS candidate selection does not consider
•Problem solving corrections
existing invoicing issues
•ERS process expertise segmented across
organizations
Suppliers
•Poor diagnostic of the problems
Clients
8

9. ERS CoE concept
Strengths
• Training and support to ensure • Implementation process
accuracy and timeliness • Helpline
•Clear ownership of ERS process
•ERS process expertise centralized
Goods
Suppliers
receivers
•Preventive analysis to identify ERS candidates
•Negotiate ERS with vendors
Payables
ERS Procurement
•Lead cut-over process
CoE •Review complex scenarios with tax
• Informing about • Optimal agreement setup
cut-over plan •Concentrate all operation ERS activities
•Unique helpline for vendors and clients
IT Tax
•Promote improvement opportunities
• Solving technical issues • Ensure tax compliance •Interface with IT to enhance system
9

10. How to identify the supplier?
Example for demonstration purpose only
• Supplier A – providing transportation services for sales
• Supplier B – delivering chemical products for chemical plants
KPIs (annual) Supplier A Supplier B
Invoice volume 25 120
Avg. no. of deliveries per inv. 50 1
Invoice recycling 1% 20%
Payables KPIs
FI invoices 0% 0%
LVT invoices 0% 25%
Price changes annual monthly
Non-contract POs 0% 10% Procurement KPIs
10

11. How to setup supplier to ERS?
Perform final ERS Initiate cutover plan for ERS ERS CoE
feasibility check on the implementation:
selected supplier • Communication to clients and
awareness training
• Communication to Procurement
and Payables Operational Team
Identify ERS • Clean-up of vendor account
candidates • Request vendor master update
Contact vendor to • SAP agreement and open POs
propose ERS agreement update
(Procurement support if
needed)
Request the supplier
to stop issue invoices
Obtain singed ERS Hand-over ERS Periodic check
agreement from vendor request form and copy to ensure
of ERS agreement to flawless ERS
Procurement process
Fill in ERS request form Filing completed ERS Procurement
with supplier details request form and copy
of ERS agreement
11

12. ERS potential issues
ERS is a great invoicing tool . . .
. . . if selectively applied
Potential ERS issues: Suggestions:
•Implementation cost not meeting benefits •Apply it for mid / high volume suppliers
•No timely and accurate goods receipts •Good receivers awareness
•Frequent price updates •Use PtP KPIs to select ERS candidates
•Contract price not including all costs •Negotiate delivered price
•Supplier not able to reconcile payments •Provide support and helpline to suppliers
12

13. Success factors
• Clear ownership of the ERS end-to-end process
• Deep knowledge of PtP process and tax
implications
• Accurate selection of ERS candidates
• Structured cut-over plan for each new ERS
vendor
• Awareness and training of all involved parties
• Strong interface with Procurement, Tax and IT
• Parallel work to reduce recycles and expand
ERS opportunities
• Management buy-in: Cascade ERS efficiencies
to the clients
13

14. Summary
Concentrate ERS end-to-end process in one team
• Drive continuous improvement
• Prompt errors detection prevent re-occurrences and helps identify
contract adjustments
• Unique ERS focal point for the whole organization
Use Payables and Procurement metrics to select ERS candidates
• ERS works well if „traditional“ paper process works well
Awareness of all involved parties is a key factor
• Time spend in training has a good pay back
Distribute the benefits
14

15. Questions
15