Different Methods of Electronic Invoicing and Sharing Best Practice Tim Kirk, Channel Partner Manager

Agenda  Brief introduction to Intelligent Capture, a PROACTIS Company  What is E-Invoicing and why is it important?  What is the situation with E-Invoicing currently?  E-Invoicing pitfalls to avoid  How you might bridge a gap  Conclusion and questions

About PROACTIS

What we do: About PROACTIS Spend Control and eProcurement PROACTIS Purchase-to-Pay (Value Capture) Source-to-Contract (Value Creation) Supplier Management Sourcing Contract Management Content Management Purchasing Invoice Receipt Invoice Processing Employee Expenses Supplier Interaction and Commerce

 Document and data capture & e-Invoicing specialist since 1995 with numerous Public Sector customers  Combine best practice processes and market leading technologies  Track record of achieving quantifiable cost savings and efficiency improvements  Strategic partner of UNIT4  Customer of our own technologies – ICMS  Part of PROACTIS Group since 08/14 Intelligent Capture

The Challenge

Challenges within AP processes

The P2P cycle

Optimising Invoice Receipt

High effectiveness criteria Linkage to business strategy/performance Predictive capability High efficiency criteria Technology leverage Ease of access Use of analyst resources Cycle time Cost “World-class” performance

EInvoicing

“ Electronic invoicing is the transmission and/or storage of invoices, in an electronic format without the delivery of paper documents. The electronic format may be a structured format such as XML or an unstructured format such as PDF” HMRC - VAT Notice 700/63: electronic invoicing What is Electronic Invoicing?

 Reduce the processing cost and time per invoice  Reduce or even eliminate paper  Reduce errors, duplications and fraud  Meet or exceed supplier payment requirements  Achieve early payment discounts  Supports economic growth  Private sector already doing it  Other countries already doing it  EU legislation What does Einvoicing promise?

“The Directive calls for the reception and processing of e- invoices using the new European standard to become mandatory four and a half years after the entry into force of the directive, so approximately in the third quarter of 2018” – EU DIRECTIVE 2014/55/EU  Carrot and stick in the form of encouragement and regulation  E-Invoicing will become more and more prevalent. “save…£2Billion per annum”  Some have implemented and are benefitting today  Wait and see approach for many Current landscape for Einvoicing

 Cultural change obstacle  Standards - EU not available until May 27 th 2017  Fear of a large capital investment  Which provider do you choose?  Lack of momentum  Won’t be compulsory for suppliers – “the Directive does not in any way place an obligation on businesses to use the new standard, or even to send invoices electronically” – FAQ DIRECTIVE 2014/55/EU Why isn’t everyone doing it already?

Einvoicing best practice – pitfalls to avoid

 “ AP seldom benchmarked  There is little literature on best practice in this space  More to the process than reading the invoice  “Garbage in, garbage out”  Invoice process automation the beginning, not the endpoint – wider elements to consider such as purchasing, sourcing and procurement It’s process more than technology

 Evolution, not revolution  Easy to get carried away with E-invoicing whilst neglecting paper  There is a paper “quick win”  PDF can be a stepping stone Don’t neglect the paper “long tail”

 Scalability in three ways  Beware of small volume references and a lack of focus on efficiency  What about other document types? Fringe benefits  Can it handle all possible inputs  Essentially, Is the solution future proof – new initiatives like SSCs, new directives? Can you cope with volumes?

 Electronic invoices remove likelihood of read and keying errors  They don’t prevent the content being incorrect  Anecdotal evidence suggests that the volume of content errors doesn’t dramatically reduce  How and where should you resolve these issues An Einvoice can still be incorrect

Einvoicing a beginning, not an end Supplier sourcing Tendering Catalogues Contract Management Purchasing eProcurement Accounts Payable Invoice Processing

Electronic purchasing systems Electronic workflow solutions Linked to scanning facilities, electronic archives, systems Electronic invoices with extensive process automation OCR solutions System integration including single database for supplier master Automatic KPI extraction Supplier self services Electronic payments Driving out errors

Benchmark comparable processes Invoices processed per FTE % invoices received electronically % invoices automatically matched & approved % invoices sent outside AP for discrepancy resolution Average invoice processing cycle time # phone/ supplier enquiries % invoices with available payment discounts taken Analyse the processes, find the problems Use technology to enable efficiency Create a business case to highlight the ROI Benchmarking and ROI

PROACTIS Invoicing

P2P – Invoice processing

Practical Steps Capture invoice data, review & validate Receive mail, open, sort, batch, scan Invoice Receipt Electronic Invoice Managed Service Manual entry PO Box XML PDF PO Flip PCards OCR Output Stand alone Invoice PO Invoice Code Invoice Authorisation Match Resolve Outside Tolerances Release to payment Release to payment Invoice Processing