Workflow Jim Kondrat

Searching… Pulling… Poor Accountability… Process Variation… Duplicate Invoices… Poor Work Distribution… Missing Vendor Terms! No Scale…

Processes that took days or weeks now take minutes… OnBase Workflow

Saves an estimated $1 million per year 10 AP personnel process more than 600,000 invoices a year Connects more than 70 sites around the country Building Material Holding Corporation

50% reduction in AP backlog Increased volume without increasing staff Simple, flexible integration with existing SAP system

Need for Process Automation Reduce Expenses Increase Revenue

Delays and duplicate entry – Invoices sit idle in the process Payment is not made Payment is late – Invoice information entered multiple times

Work distribution – Too much work – Not enough work – No effective way to measure work No Audit Logs No KPI benchmarking

Not meeting vendor terms –Unable to easily adapt process to various terms with multiple vendors

Stamp Received: Packing Slip Enter Packing Slip into Accounting System Stamp Received: Invoice Verify that each Invoice has a matching PO & Packing Slip Enter Invoice into Accounting System Deliver work to AP Specialists Call a Web Service Check if Related Documents Exist Call a Web Service Load Balancing Update Keywords Calendars AP Process Mechanics Timers

Deliver documents to AP Clerk Find Purchase Order (internal doc) Find Packing Slip (external doc) Find Invoice (external doc) Verify all documents are complete.5 min. 1 min..5 min. NON-VALUE ADD ACTIVITIES VALUE ADD ACTIVITIES 3 Minutes

Delivering all AP documents SIMULTANEOUSLY for processing

Automate work distribution

Load Balancing

Automate work distribution Automatically update keywords Automatically update Line of Business Systems Automatically transition documents

Need to Enforce Consistency Reduce Processing Time Increase Accuracy

Time and cost to: – Manually find and pull matching documents – Verify documents are accurate for matching

Time and cost of: – Processing delays Slow approvals Document hand-offs Not knowing if all required documents are available

Create Check Verify that the total amount matches on the Invoice, PO, & Packing Slip Compare Keyword Values Verify that the quantity matches on the Invoice, PO, & Packing Slip Compare Keyword Values Is the amount >= $15,000? True Validate Keyword Values Update Accounting System False Call a Web Service Send to AP Manager Electronic Routing Notifications AP Process Mechanics

Create check Verify total amounts match on PO, Invoice, Receipt Verify total quantity match on PO, Invoice, Receipt Verify if manager approval is required Route to manager for approval 1 min..5 min. NON-VALUE ADD ACTIVITIES VALUE ADD ACTIVITIES 3.5 Minutes

Automatically compare keywords Automatically validate keywords Automatically Update Line of Business Systems Automate Notifications, Transitions, and Approvals

Reporting Structure Need for Work Coverage Available Resources

Lack of enforceable reporting structure No coverage or accounting for: –Vacations –Sick Time –Weekends –Holidays

Send to AP Manager Electronic Routing Vacation Sick Calendars Organization Charts

Provides process coverage –Automatically route documents to next available resource –Calendars account for holidays, weekends, vacation and sick days

Need to Promote Accountability Approval Management Audit Trails

Unknown approval history Approval levels are unknown No clear segregation of duties

Audit Logs Security Electronic Routing

Audit Logs

Audit logs –Complete history of who did what to which document and when Security –Refine access to queues, to tasks and to document types

Benefits Reduce cycle times Automate manual processes Ensure work coverage Promote accountability Meet vendor terms & eliminate duplicate payments!

Accounts Payable Life Cycle Contested Invoices Life Cycle

Need to Manage Communication Vendor Management Correspondence Management

1.Invoice 2.Purchase Order 3.Receipt 4.RFQ 5.RFP 6.Bill of Lading 7.Proof-of-Delivery 8.Inspection Doc. 9.PO Change Order 10.EDI Transaction 11.Vendor Contract 12.Shipping Manifest 13.Vendor Debit Memo 14.Vendor Credit Memo 15.Accounting Adj. 16.Receiving Report 17.Product Specs. 18.Technical Drawings 19.Reference guide or SOP guidelines 20.Correspondence

Managing vendor documents Difficulty viewing previous vendor transactions Problems accessing vendor specific SOPs

Search for documents related to Vendor Invoice Disputed Contested AP Process Mechanics Search for documents through Document Retrieval Folder Templates

Missing Contract Proof of Delivery Inspection Documents Bill of Lading

Folder Templates –Provide an organized method for tracking documents Available Missing

Vendor Call Vendor about Invoice Invoice # Contact 9 Second Foods about Invoice Write down Information & Lookup Invoice Accounts Payable Processing Invoice to be paid? Update Invoice Status and Transition True Purge Invoice False Contested AP Process Mechanics

Process Change

Vendor Contact Vendor about Invoice Submit Information about the Invoice Accounts Payable Processing Invoice to be paid? Update Invoice Status and Transition Purge Invoice False True Contested AP Process Mechanics

Vendor Contact Vendor about Invoice Submit Information about the Invoice Accounts Payable Processing Invoice to be paid? Update Invoice Status and Transition Purge Invoice False True Ad Hoc Task Notification w/URL to E-Form E-Form Contested AP Process Mechanics

Notifications &DocID=%#

E-Forms

External E-Form Processing for Non-OnBase Users LoginFormProc

Vendor Accounts Payable Processing Invoice to be paid? Update Invoice Status and Transition Purge Invoice False True E-Form SYS – Update Keywords Validate Keyword Values Doc – Remove This Document from All Life Cycles Doc – Transition This Document Ad Hoc Task Notification w/URL to E-Form Contested AP Process Mechanics

Automatically notify vendors Enable vendors to self-serve Integrate with other OnBase modules

Reduce cycle times Automate manual processes Effectively collaborate with partners and vendors Quickly resolve disputed invoices! Benefits

190+ point and click configurable Rules and Actions

Code vs. No Code

Click to edit Master text styles –Second level Third level –Fourth level »Fifth level Out of the Box

Click to edit Master text styles –Second level Third level –Fourth level »Fifth level Individual document processing Custom code Processes related document sets Transactional automated work Dynamic metadata and routing Automated distribution of work through load balancing, calendars, and organization chart roles Item level auditing Timers Passing documents and metadata to external applications. Workflow metric reporting KPI dashboards Business rules engine

Benefits

In a non-automated environment the average cost to process a payment can be $12.82 “ ” Source: A 2005 benchmarking study by the IOMA Group (The Institute of Management & Administration)

In a highly automated Workflow environment the average cost to process a payment can be $6.81 “ ” Source: A 2005 benchmarking study by the IOMA Group (The Institute of Management & Administration)

20 AP personnel process more than 600,000 invoices a year ~2,400 invoices a day ~120 invoices per employee per day ~4 minutes per invoice

10 AP personnel process more than 600,000 invoices a year ~2,400 invoices a day ~240 invoices per employee per day ~2 minutes per invoice

20 AP personnel paid ~ $60,000 (fringe & benefits) ~$1,200,000 a year Current cost with 10 AP personnel is ~$600,000 Savings ~$600,000 a year

10 AP personnel using Workflow $1,250 per Workflow license $12,500 provides Workflow for entire department ~ $25,000 for development and professional services

$600,000 annualized savings –~$12,000 weekly savings $12,500 cost for Workflow for entire department for the entire year + $25,000 in professional services Payback ~3-4 weeks: Self-funding ROI

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