Speed, Visibility and Control—

Best Practice AP Processing in Oracle

E-Business Suite
Presented by

Kevin Ryan, Regional Sales Manager

ReadSoft Oracle Solutions
 Agenda
1. The Dilemma of Manual AP
̶ Inefficient
̶ Risky
̶ Costly
2. The Advantages of Automated
AP Processing
− Hard Savings
− Soft Savings
3. A Picture of Best Practice AP Processing
− Simplify Processes
− Apply Capable Technology
The Dilemma of Manual AP
Top Pressures Driving Interest in AP Improvement
 A Day in the Life of an AP
Department
Manual Environment
15% Data entry
35%
15%
Exception handling

35%
Vendor Support

Source: ReadSoft Customer Survey

Audits and Reporting
The Dilemma of Manual AP
Inefficient

• Cumbersome processes
– Physical mail
– Hand keying and copying of invoices
– Physical invoice approval routing
– Excessive or slow communications
• Email, fax, mail
– Ineffective problem resolutions
– Manual storage
The Dilemma of Manual AP
Lacks Visibility

– Delayed receipt
– Lots of missing invoices
– Approval process tracking
– Performance metrics and SLA
– Accrued liability/
compliance reporting
The Dilemma of Manual AP
Poor Controls

– Lack of standard procedures

– Lengthy audits
– Difficult to see fraud
The Dilemma of Manual AP
Cycle Time is Slow

– Missed discounts
– Late payment penalties, services cut off
– Unhappy vendors and poor credit rating
– Inability to negotiate better terms/pricing
The Dilemma of Manual AP
Restricts Scalability

– Unable to increase production volume without

• Increased staff
• Increased office space
• Increased infrastructure
• Increased supervision
Advantages of AP Automation
Benefits of Approval Workflow

PayStream Advisors, 2013

Advantages of AP Automation
Hard Savings

– Dramatically lowers transaction costs

– Reduction / reallocation of costs associated with
manual processing
– Low TCO
– Better terms
with suppliers
– Fast ROI
Advantages of AP Automation
Soft Savings - Speed

– Shorter processing and payment cycle times

– Shorter response times
– Productivity is improved
– Streamlining of major AP sub-processes
• Invoice receipt
• Approval and inquiry
• Validation and reconciliation
• Settlements
– Pre-defined best practice workflows
Advantages of AP Automation
Soft Savings - Visibility

– Into the entire process

• Three points: capture, workflow, ERP
– Into liabilities and operating expenses
• Billing discrepancies
• Overpayments
• Unclaimed negotiated discounts
• Contracted payment terms
• Early payment discounts
• Late penalty fees
– Reporting
Advantages of AP Automation
Soft Savings - Control

– Simplified, automated invoice and workflow

management
• Based on organization’s business rules
– Improved forecasting and cash management
– Decreased financial risk through enforced compliance
– Better coordination and information flow
• AP
• Procurement
• Finance
• Treasury
• Suppliers
Best Practice AP Processing
Process

– Centralize invoice receipt

– Institute a “No PO, No Pay” policy where possible
and integrate invoice-to-PO matching
– Reduce paper and physical routing
– Measure AP performance
• Once a month or more
• Enable dashboards
– Standardize invoice processes
• Across all locations and units
• Eases difficulty of identifying root
causes or errors
Best Practice AP Processing
Apply Technology – Key Capabilities

– Ensure that data are shared between solutions and

all stakeholders
– IT Considerations
• Consistent with Oracle’s Strategic Direction
– Fusion Middleware
– Ease the transition when you upgrade to R12
• Quick implementation
– Configurable versus customizable
• Seamless integration
Best Practice AP Processing
Apply Technology

– Invest in automation of invoice receipt and workflow

• Advanced OCR
• Best practice workflow
» Automated PO matching
» Accelerated coding
» Line level approval
 AP Automation is Becoming
Mainstream
Level of Accounts Payable Automation
3%

15%

33% High
Medium
Low
None

49%

The Accounts Payable Network, 2012

The current state of AP
OCR Technology

The Institute of Financial Operations, 201

Best Practice AP Processing
Apply Technology – Key Capabilities

– Other important considerations

• Cloud Option
• Mobile Approval Option
• Vendor Portal Option
• Reporting Tool Option
Graco, Inc.

AP Manager, Graco, Inc.

 Green Mountain Power
“The users just accepted
ReadSoft’s solution like it was
another piece of Oracle.”

Purchasing Manager,
Green Mountain Power

“We’re able to better manage our money—we

know what’s outstanding in people’s workflow,
waiting to be coded and then paid.”

Purchasing Manager,
Green Mountain Power
 About ReadSoft
 Experts in AP Automation
̶ 8,500 customers
̶ Market leader in installations
 Solutions validated by Oracle
− Supports Oracle E-Business Suite R12
− Dedicated Oracle Solutions Lab in Raleigh
 Delivers low total cost of ownership (TCO)
 Simple, easy-to-use solutions
 Global footprint, stable company
 Questions

www.readsoft.com
 For More Information
kevin.ryan@readsoft.com

www.readsoft.com
ReadSoft – Oracle
Solution Discussion
April X, 2013
ReadSoft Corporate Background Raliegh

 Established in 1991
 8,500+ customers
 590 employees in 17 countries
 300+ partners in 70 countries
 Oracle Platinum Partner
 ReadSoft Oracle Solution Lab
opened in 2005
ReadSoft on the map
ReadSoft Financials
 Publicly traded on the NASDAQ OMX, Stockholm’s
Small Cap List
 Introduced dividends to shareholders for the first
time in 2009
 $121M Revenues in 2012
 Continuing Positive Cash Flow
– $12.5M reinvested into business in 2012
 Product expansion in Capture, SAP and Oracle
landscape on premise and in the cloud
ReadSoft North America
 Serves US and Canada
 Largest subsidiary
 Highest profit subsidiary
 Largest consulting services and
training staff
 1,200 customers
Raleigh
 84 employees ORACLE ERP SOLUTIONS LAB

New Orleans
REGIONAL HEADQUARTERS
ReadSoft Oracle Customer Sampling
 The ReadSoft overall offering

Purchase to Pay / Order to Cash

Documents Accounts Payable Automation
All formats, all
media
Any ERP

Any target
Enterprise Capture system
 The ReadSoft overall offering
Integration and
Capture
workflow

Integration and
Capture
Documents workflow
All formats, all
media
Integration and
Capture Any ERP
workflow Partners

Any target
Capture Partner solutions system
The ReadSoft ecosystem
Document classification Archiving solutions

Data capture Case management

Core
technologies

Products

Solutions
Other ERPs

ReadSoft
Partners
ReadSoft First to Add ERP Workflow

ReadSoft was the first capture vendor to fully

recognize the importance of adding workflow (SAP
and Oracle) to invoice capture.

Source: Document Imaging Report, September 18, 2009

 Acknowledgement

“Despite some competitive focus on analytics ReadSoft

has acquired and partnered for both better technology
and process logic.

ReadSoft's intelligent capture and its presentation of

analytics in the cockpit continue to impress business
buyers looking for certified integration, simple process
automation and good management insight.”

Critical Capabilities in Composite Content Applications:

Paper Invoice Automation, Toby Bell, Dec 2010
 Acknowledgement

“With a wide range of solutions for procure to pay and

order to cash, ReadSoft continues to excel at document
process improvement surrounding ERP.”
Critical Capabilities in Composite Content Applications:
Paper Invoice Automation, Toby Bell, Dec 2010
ReadSoft AP Automation Solution
 Oracle Validated Integration
 Operates in the Oracle environment
 Security and support is guaranteed by Oracle
 Supports Oracle version upgrades
ReadSoft AP Automation Solution
 Incorporates Oracle BPEL
 Reuses Oracle approval, and financial
and account settings
 Validates imported data against Oracle rules
 Automated posting in Oracle AP for payment
PROCESSIT Solution Suite
 PROCESSIT – Document Processing Automation for
Oracle® E-Business Suite

Automates the accounting and matching

process for incoming invoices.
Eliminates manual paper handling, typing,
storage & retrieval of invoices.
Addresses the needs of the organization
including Application Monitoring Tools for IT
Invoice Capture Methods
Scanning Options
Local
Remote Disconnected
WAN
E-Mail Delivery

E-Invoice
XML
EDI

Supplier Workbench
E-Form Entry
PO Flip
ERS
Invoice process automation in Oracle EBS
Inbound Invoices
1 Invoices in various forms are submitted
by suppliers through multiple channels
4 Invoice Processing
Invoices can be processed in a “lights out mode”
– in paper form or electronic format for automatic staging in Oracle Accounts Payable
for payment processing or can be routed for GL
Invoice Capture Verification Account Coding, Matching, and Approval
2 The captured image and metadata is Management
verified by an operator the first time
around and only if needed afterwards 5 Invoices Ready for Payment
Invoices are staged in Oracle Accounts
3 Invoice Data Transfer
The captured image and metadata is
Payable 11i or R12 ready for payment
transferred to PROCESSIT
 Automated invoice handling with optimized processing
Suppliers

Suppliers send
Invoices are interpreted by DOCUMENTS,
invoices via mail,
verified by a user if required, and transferred
email, fax, XML
to PROCESSIT
Mailroom

Mailroom scans OCR-data is sent to ReadSoft

paper invoices DOCUMENTS

Standard invoice
validations
applied

Automatic Match? Yes - Full match!

Accounts Payable

No

Invoices are
Account Approval Process according to ERP ready for
Coding hierarchy payment
PROCESSIT Solution Suite
 Licensed Add-On Modules extends the product, offering
improved vendor collaboration, in-depth auditing reports for
fraud risk analysis, and mobile device support
PROCESSIT Mobile
PROCESSIT Auditor Advanced Edition
PROCESSIT Supplier Workbench (Web Portal)
Automating Invoice Processing
in Oracle E-Business Suite