|
 |
|
|
Description
Optura Vendor Invoice Management is a prepackaged composite application that works with existing ERP systems to streamline accounts payable operations. Vendor Invoice Management optimizes and simplifies the process of creating, managing, monitoring and routing purchase orders and invoices for AP personnel and vendors. Invoices are processed more efficiently and quickly with problem invoices automatically routed for proper problem resolution, approval and payment. Invoices are managed through a secure, browser-based interface where AP employees and vendors collaborate to resolve problems, obtain invoice status, check PO numbers, submit invoices and more.
|
|
|
Background
Invoice processing generally follows the 80/20 rule-eighty percent of procurement billing may be processed without a problem. The other twenty percent creates problems or exceptions that require eighty percent of the invoice management resources to resolve. Invoice disputes, invoices submitted without purchase orders, insufficient approvals, cost center errors, duplicate invoices, discrepancies in quantity, price or date, freight mismatch, special tax conditions, PO allocation errors-all of these conditions lead to invoice management problems that require time and resources to remedy.
|
|
|
Figure: Costs associated with problem invoice
processing are disproportionately high.
|
|
|
For most companies, invoice processing requires too much manual effort causing a drain on resources both internally and from the vendor involved. Manual processing and resolution efforts involve time-consuming historical research, communication with the vendor, process documentation, requests for additional information from multiple parties, manual routing, and the labor-intensive process of monitoring and providing update reports on the status of unpaid invoices. AP staff resources are taxed in managing these activities while vendors and buyers experience a wide range of disincentives and disadvantages.
The liabilities stemming from poor management of payables has an impact on both procurers and suppliers. Purchasing and supplying companies are disadvantaged in the following areas:
- Higher Costs - Problem invoices increase costs in two areas: lost discounts for prompt payment and increased AP processing costs. Companies are not able to take advantage of discounts for on-time or early payments which discounts can be substantial. Accounts payable costs increase when additional personnel resources are required for invoice research and resolution.
- Inefficient Resource Utilization - Managing problem invoices is a draining overhead cost that provides no capital advantage to either purchaser or supplier. Personnel and resources used for invoice exceptions would be better utilized if redeployed on activities that enhance business and build value.
- Lack of Process Control - Manual activities outside of an established workflow lead to lack of process control. Invoices are often left floating or in abeyance with no direct responsibility for action or resolution.
- Duplicate Invoice Submissions - Delayed processing can lead to duplicate invoice submission which further compounds the resolution process for both organizations.
- Slow Payments - Vendors suffer slow payment while purchasers are less likely to accurately determine project or product costs. The inability to precisely monitor and track revenues and expenses for both companies hinders efforts to effectively compete and in some cases remain viable.
- Strained Relations - Slow payments and unnecessary processing can strain or damage purchaser/supplier relationships. In cases of short supply or instances when rapid delivery is required, trust and relationships between companies are tested which impairs production or delivery cycles.
Providing an automated workflow to specified decision makers and access to specific invoice-related information through a standard desktop or Web-based application interface can effectively reduce or eliminate the majority invoice management problems. Vendors are able to answer questions and obtain accurate status information through self-service-without involving AP staff. Invoice exceptions are automatically categorized and routed for approval and processing through established workflow with documented process steps. Invoices are processed in a timely manner with minimum manual effort and optimized efficiency for vendors and purchasers.
|
|
|
Product Overview
Optura Vendor Invoice Management integrates workflow and Web services technologies with in-place ERP systems to create a composite application that optimizes and automates problem invoice management and resolution. Vendor Invoice Management ties seamlessly with ERP systems such as SAP using established invoice exception best-practices management. Optura prepackaged solutions accommodate 28 of the most common invoice exception scenarios. In addition, custom solutions can easily be developed that automate resolution with business rules, workflow, approvals and actions.
|
|
|
Figure: Optura Vendor Invoice Management streamlines
invoice processing for both suppliers and vendors with
automated routing and visibility through the entire process
|
|
|
Optura Vendor Invoice Management includes invoice handling features for both AP employees and vendors. Optura Vendor Invoice Management Features for AP personnel include:
- Dashboard Access and Visibility - Users access application, content and history using an intuitive, graphical, dashboard approach with buttons that provide drill-down into the original invoice image, purchase order, goods receipt and invoice information.
- Invoice Entry - Users are able to enter invoices from any location using an Internet connection with invoices entered directly into the ERP system. This enables line-of-work managers greater control over budgets and expenditures and simplifies invoice management.
- Invoice Classification - Classify problem invoices automatically for further action as blocked, parked or held. Classification determines next steps in the processing cycle and various degrees of escalation notices are sent.
- Invoice Routing - Depending on classification, invoice exceptions are routed according to established business rules and policies. Workflow policies determine where invoices are routed and what approvals or next steps are required.
- Status and Notification - Monitor and determine where invoices stand in the payment process and notify vendors of payment exceptions to speed the resolution of issues.
- Invoice Scanning - Include invoices in electronic form whether scanned, faxed, delivered via XML or entered by the vendor via an online self-service portal. Vendor Invoice Management can be linked with advanced imaging solutions such as indexing, automated duplicate invoice checking, and optical/intelligent character recognition (OCR/ICR). Invoices can be displayed with associated purchase order numbers.
- Invoice History - Receive information about past invoices, including detailed invoice history and past payment information.
- Dispute Resolution - When dealing with invoice disputes, AP personnel may request additional information, receive status of orders, send notification of cancelled invoices, and collaborate with other accounts payable staff.
- Collaboration - Initiate and respond to questions and issues related to problem invoices, payment histories and partner profiles.
- Partner Setup and Maintenance - Work with other AP staff to establish authorization protocols and access rights for creation and maintenance of partner profiles.
- Non-PO Invoices - Accommodates non-PO invoice approval where vendors send invoices without purchase orders to requisitioners in the field, who in turn assign cost center and send the invoice for manual approval.
In addition, Optura Vendor Invoice Management architecture allows for rapid development of new invoice exception policies and procedures. This includes:
- New Workflow Creation - Additional exception actions can be created with new workflow routings based on invoice classification, business policies and roles.
- Business Rules and Logic Implementation - Vendor Invoice Management facilitates the creation and implementation of new business rules and logic to determine classification and routing. Certain options can be made available or suppressed based on tolerances, thresholds or limits.
- Role/Responsibility Definition - Role-based options are configurable and pre-defined with routing or approvals based on roles instead of user ID. Optura Vendor Invoice Management integrates with existing ERP directories for roles and responsibilities but also includes a user database if needed.
|
|
|
How Optura Vendor Invoice Management Works
|
|
|
Figure: Invoice Exceptions are classified and then routed
for resolution and payment based on the exception conditions.
|
|
|
The Optura Vendor Invoice Management process accommodates three types of invoice exceptions. If an invoice does not post successfully due to problems or required approval, the invoice management process automatically checks against 28 out-of-the-box exception reasons and classifies the invoice as Blocked, Parked, or Held. Each classification initiates a different workflow for resolution with a high-level summary as follows:
- Blocked invoices due to discrepancies in quantity, price or date are routed for resolution based on the reason for the block. The invoice and associated images are routed to the appropriate person for resolution. A header or overview of the document is displayed with buttons for drill-down detail. The reviewer has multiple options from referring to a buyer to holding for delivery.
- Parked invoices are held based on definable "parking reasons codes" such as non-PO invoice approval, vendor maintenance required, freight mismatch, special tax treatment required and others. Depending on the reason for parking, the invoice is routed to the appropriate approver, rejected, returned to the vendor or changed and resubmitted for approval.
- Held invoices are classified for hold reasons and routed accordingly-held invoices cannot be parked. They may be routed to a vendor maintenance group or held until a service entry is created but are in process until resolution.
Optura Vendor Invoice Management includes best-in-class dialogs that present a complete, concise view of the information a user needs to make a quick and informed decision. Vendor features include:
- Self Registration - With a Web-based interface, vendors can make application and provide registration information to create vendor profiles and account information.
- PO Creation - Vendors can submit proposals online which initiate the generation of purchase orders.
- Invoice Submittal - Invoices can be created online and submitted for payment with invoice and PO matching and tracking occurring automatically.
- Historical Information - Vendors have access to all historical account information and are able to research, compare and analyze previous transaction and payment histories.
- Collaboration - If need arises, vendors are able to communicate with appropriate AP personnel using online chat, file sharing and discussions. Vendors are automatically matched with or routed to the AP employees with skills and authority to resolve the specific issue.
- Status Visibility - At any given point in the transaction cycle, vendors are able to determine position and monitor status of invoices. Optura Vendor Invoice Management provides an open window for tracking detail and invoices status in the payment process.
|
|
|
Figure: Vendors are able to view historical invoice information
and monitor payment status using a standard Web browser.
|
|
|
Product Overview
Optura Vendor Invoice Management integrates workflow and Web services technologies with in-place ERP systems to create a composite application that optimizes and automates problem invoice management and resolution. Vendor Invoice Management ties seamlessly with ERP systems such as SAP using established invoice exception best-practices management. Optura prepackaged solutions accommodate 28 of the most common invoice exception scenarios. In addition, custom solutions can easily be developed that automate resolution with business rules, workflow, approvals and actions.
|
|
|
Benefits
Implementing Optura Vendor Invoice Management provides multiple advantages for enterprise companies seeking to streamline invoice operations and provide higher levels of service. Major benefits include:
- Reduced Cycle Times - Invoices exceptions are processed much more quickly. Automated classification and routing plus online collaboration speed the process of resolving problems and issuing payment.
- Increased Productivity - Both purchasers and vendors are able to refocus efforts on activities that are business positive-research, problem querying, and manual routing are eliminated.
- Lower Costs - Increases in productivity save money and in addition, companies are able to take advantage of discounts for on-time or early payment. Investments in ERP systems are preserved and leveraged to provide additional services at minimal expense.
- Strengthened Partnerships - Better communication and payment coordination allows companies to scale volume or increase transactions with a high level of trust and mutual expectation.
- Scalable Foundation - Optura Vendor Invoice Management integrated with existing enterprise applications provides a foundation for secure and scalable growth. Companies are able to grow business, providing high levels of internal and external service to AP employees and vendors. ERP systems are leveraged to support higher volumes without adding extra resources.
|
|
|
The Technology
Optura Vendor Invoice Management works in conjunction with existing ERP systems such as SAP to externalize workflow and collaborate inside and outside the application. Application logic resides both inside the ERP system and external to the ERP system in a middleware layer based on J2EE application standards. As a composite application, Optura Vendor Invoice Management interacts with ERP systems, providing input and acting as a user agent.
Key components of the Optura Vendor Invoice Management solution reside on an application server, using connectors and J2EE portal technology. Optura pre-packaged solutions work with all major application server products such as IBM WebSphere and SAP NetWeaver. Optura's expertise is in performance tuning the integration point with the legacy system using the Optura Transaction Control Engine™ (OTCE) and ERP specific connectors. The OTCE combined with Optura's messaging, portlet adapters, and Web services provides a powerful and flexible platform for state-of-the-art composite applications.
With Optura SAP solutions, a pre-packaged application lives inside SAP and utilizes the existing SAP Workflow/WebFlow engine. The solution uses SAP code and has been developed using native SAP technology - namely tools in the ABAP Workbench such as dialog programs, function groups, business objects, workflow definitions, roles, customizing tables, reports, etc. Optura SAP composite applications do not include any modifications to SAP core code and all code associated with these solutions exists in a separate namespace (beyond SAP 4.0B) or as a "Z" prefix (for SAP 4.0B). Some applications utilize standard SAP user-exits and, in these cases, the ABAP code required for the user-exit is not included in the transports, but is inserted manually and documented separately.
|
|
|
Learn How To...
Optura Vendor Invoice Management is a prepackaged composite application that installs quickly and integrates flawlessly with SAP and other ERP systems. Businesses that implement Vendor Invoice Management can immediately alleviate critical vendor invoice management problems and while experiencing a rapid return on their investment. Learn how to streamline your ERP invoice management today by calling Optura at 888.658-0990.
|
|
|
|
Vendor Invoice Management [PDF]
|
|
