1. ATUL PATANKAR [ ASUG INSTALLATION MEMBER MEMBER SINCE: 2000 LINDA WILSON [ ASUG INSTALLATION MEMBER MEMBER SINCE: 1999 JUERGEN LINDNER [ SAP POINT OF CONTACT MEMBER SINCE: 1998 [ ] Are you being challenged to lower invoice processing costs? (AP Automation) [ David Ulin, Mid-West Regional Manager, ReadSoft April 7, 2011

2. [ Real Experience. Real Advantage. Agenda How to Achieve Best in Class Performance in your accounts payable processes?  What is World Class Performance? How do you achieve Best in Class Performance?  What are the core processes? What are the results?  Examining Customer Successes and typical ROI

3. [ Real Experience. Real Advantage. What is Best in Class Performance?  Best in Class Performance means finance operations can lower invoice processing cost by up to 91%  Best in Class Performance means excelling at (not sacrificing) effectiveness while achieving increased efficiencies and savings  Best in Class Performance means you can define and control processes  Best in Class Performance means being able to measure success and see improvements * Research data from The Hackett Group and Gartner

4. [ Real Experience. Real Advantage. Obstacles  What is between you and World Class Performance?  Slow and labor intensive data entry processes?  Time consuming invoice matching and approval process?  Time intensive and ‘hand processed’ exception handling?  Poor visibility and transparency into the entire process?  Lost discounts or duplicate payments  Difficulty in measuring KPIs  Difficulty in analyzing the effectiveness of “as is” process  Difficulty in meeting regulatory compliance requirements

5. [ Real Experience. Real Advantage. What is automated invoice processing? INCOMING INVOICEPAYMENT

6. [ Real Experience. Real Advantage. What is automated invoice processing? INCOMING INVOICEPAYMENT DATA COLLECTION Receive paper and electronic invoices and intelligently extract data PROCESSING IN SAP Checks and validations against SAP data. Possible automated posting WORKFLOWS The possibility to add or improve business information and approve documents REPORTING & ANALYSIS See problems, optimize processes, view financial reports

7. [ Real Experience. Real Advantage. Tasks in an AP Department Solutions from ReadSoft cover 87% of these tasks

8. [ Real Experience. Real Advantage. Source: PayStream Advisors Financial Automation Survey Top pain points in AP

9. [ Real Experience. Real Advantage. Just ask the experts…  According to Gartner, most finance organizations are challenged to reduce costs, as well as the number of people on their staff, while providing higher levels of service and improving the financial effects of decision making.  But innumerable financial transaction processes that are "clogged" with paper, disconnected data and legacy processes.  Approximately 60% of the clerical effort in a typical finance organization is spent on inefficient paper processes that accompany financial transactions.

10. [ Real Experience. Real Advantage. “We believe that, in the U.S., about 75% to 80% of invoices are still paper-based. In Europe, e-invoicing adoption in 2007 was, on average, between 2% and 3%.” -Gartner Invoices by Delivery Method

11. [ Real Experience. Real Advantage. Increased business efficiency  Productivity improvements in AP help enhance the P2P process, from accounts payable to the purchasing department  Time savings and cost reductions  Reduction of errors  Shorter invoice processing time  Improved cash management  Easier to negotiate discounts  High transparency and visibility  Invoice image and invoice data are always available in each process step  Processing status always visible Reduced process costs and transparent processes

12. [ Real Experience. Real Advantage. Invoice Processing Cost & Cycle Times

13. [ Real Experience. Real Advantage. Importance of imaging & workflow solutions for AP success 25% 20% 41% 38% 18% 19% 44% 52% 49% 44% 40% 31% 28% 10% 18% 38% 41% Electronic Payments Document management repository Validation & reconciliation (workflow) Approval & inquiry (workflow) Imaging Invoice receipt CriticalVery ImportantNeutral / Not Important / Not Applicable

14. [ Real Experience. Real Advantage. 14  Gartner states, “Solutions are needed to scan, store, view, deploy and integrate data with core financial applications to ‘close the loop’ with financial processes.”  The most powerful systems are those which:  Leverage your existing SAP implementation  Incorporate front-end scanning OCR  Extend workflows to users outside of the ERP  Enable vendors to see invoice status via supplier portal  Leverage emerging technologies like dynamic discounting  Gartner 2008: Reducing the Paper Trail in Management: An Overview You Purchased SAP isn’t that enough?

15. [ Real Experience. Real Advantage. 15 Best Practice Concepts  Centralize invoice receipt  Centralize control  Establish imaging early in the AP process  Complete & early visibility  Eliminate redundancies  Enable data capture and eliminate hand keying  Leverage images for automated data entry, sorting and workflow  Automate the matching process  Match and auto-post invoices where possible  Auto-route invoice exceptions and those requiring approval w/workflow  Leverage workflow and extend to all users  Use ERP data validation to ensure accuracy  Leverage analytical data to manage and improve processes  Spot trends and process bottlenecks  Root cause of specific problems (buyers, vendors)

16. [ Real Experience. Real Advantage. MM Module FI Module ArchiveLink Content Repository Incoming invoices scanned InterpretationFreeform Self learning Vendor specific automation Validation of data (optional) Invoice data and image transferred into SAP environment, image archived in respository Invoice data validated and checked against SAP Web application server Automatic posting is possible for error free documents

17. [ Real Experience. Real Advantage. EDI process MM Module FI Module ArchiveLink Content Repository IDOCs enter SAP via the EDI interface Invoice placed in to INVOICE COCKPIT Invoice data validated and checked against SAP Web application server EDI COCKPIT receives document (Possible posting via standard SAP IDOC process) Rendered invoice image placed in archive Automatic posting is possible for error free documents

18. [ Real Experience. Real Advantage. Workflows MM Module FI Module ArchiveLink Content Repository AP staff starts workflow (automatic starts are possible ) Information is added or improved. For example, Account coding Account coding PO or goods receipt PO or goods receipt Notes or attachments Notes or attachments Workflow receipients can access workflow via web browser or SAP GUI Managers can approve, reject or request more information Web application server Add and improve information Approval Invoice image available from archive Notes, attachments, and workflow log available from archive Search helps and data validation is available from web browser

19. [ Real Experience. Real Advantage. MM Module FI Module ArchiveLink Content Repository Scan counters Interpretation rates Verify errors Transfer counters Workflow counters Web application server Document types Discount information Payment information Error types

20. [ Real Experience. Real Advantage. INVOICE COCKPIT

21. [ Real Experience. Real Advantage. ReadSoft’s Best Practice Solution Best value for you  Enabling end-to-end automated Purchase-To-Pay process to maximize the ROI of your ERP  Developed by the market leader in invoices automation with unique expertise of the SAP technology  Securing your investment because it is the most widely used solution certified by SAP  “Ready-to-use” but flexible solution pre-configured into SAP Business Suite

22. [ Real Experience. Real Advantage. The Differences are Clear Paper Based Processing  $3 - $93.00 per invoice/payment  20-45 day elapsed processing time  Managing to target DPO or discount capture difficult  75% of all calls to AP status calls  80% of all calls from internal employees  Lack of cash flow visibility Automated Processing  $0.80 - $3.75 Invoice/Payment  Process time reduced to 2-5 days  Control over payment timing  Call volume to AP reduced drastically  Reduced error handling  Ability to predict cash inflows and outflows

23. [ Real Experience. Real Advantage. Benefits of Invoice Automation

24. [ Real Experience. Real Advantage. 24 Typical Results of Process Optimization  Reduction of manual data entry is generally 50 – 75%  Cycle time can be reduced from weeks to 2 – 5 days  More visibility and control of processes, outstanding liabilities and cash flow  Significant time savings due to less time spent:  handling vendor calls  resolving issues  verifying non-PO information  chasing down approvals, etc.  Average Return on Investment of 6 – 12 months

25. [ Real Experience. Real Advantage. 25 Customer Successes in Brief  Kellogg’s  50% of PO-based invoices automatically from Scan to Post  Time Warner Cable  Increased volume 40% via acquisition while significantly reducing manual labor  33 keystrokes per invoice saved (top 100 vendors = 433K invoices saving over 14 million keystrokes)  78% of invoices go into the ERP untouched  TransMontaigne  Enabled to pay according to terms rather than immediate  Reduced cycle times from 32 days average to 5 days  Rich Products  Increased discount capture  Reduced cycle times

26. [ Real Experience. Real Advantage. 26 ]  Thank you.