based invoice processing solutions provides another deployment option for
Mark Brousseau mid-sized users of SAP ERP platforms. It is for this reason that one-third of Mark Brousseau, editor of special projects for the Institute businesses will have a cloud-based invoice processing solution within two of Finance & Management, discusses how accounts years, IFO says. payable automation addresses the most pressing business challenges SAP users face.
#2: Visibility into the Business
The second trend is that businesses are automating accounts payable processes to facilitate real-time decision-making. Todays increasingly Q: Which trends in finance are most competitive global business environment requires businesses to make impacting SAP accounts payable strategic and tactical decisions faster than ever. This dynamic requires environments today? more precision and efficiency in how decision-makers access and manage financial information. In fact:
A: Three trends are fundamentally reshaping accounts payable processes
across all businesses: 40 percent of businesses surveyed by Ardent Partners said that improving accounts payable reporting and #1: Cloud Deployment analytics is their top priority. The first trend is that more businesses are moving invoice processing to the cloud. Businesses are embracing cloud computing as a way to automate their operations without the up-front capital expense, in-house maintenance, By tightly integrating an automated invoice processing solution with an ERP software and hardware requirements, or risk of traditional on premise platform, decision-makers achieve a 360-degree view of their operational software. Implementing a cloud-based solution also enables businesses to and financial data, including: extend the value of their ERP investments more quickly than in the past. Operational metrics Cloud-based accounts payable solutions deliver the same features and Aggregated data for cash forecasting and working capital management functionality of on premise software, and can be customized to a users Corporate spending and compliance with supplier contracts needs. For instance, cloud-based solutions provide users with the ability Budget variance analysis and expense analysis by vendor to perform payables functions such as invoice scanning, data capture, validation and approval. Cloud-based invoice processing solutions also The enhanced visibility that results from the integration of an automated address the challenge of remote work. And these cloud-based solutions can accounts payable platform with SAP helps businesses streamline invoice be integrated with existing on premise ERP solutions, such as those from processing through the automatic validation of invoices against ERP data, SAP, creating a hybrid operations environment. The emergence of cloud- faster resolution of exceptions, and streamlined training of front-line users.
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Enhanced visibility also helps businesses control Cash Conversion Cycles, Q: What is the most important piece of advice Days Payables Outstanding and Days Sales Outstanding, more easily for accounts payable leaders who use SAP? aggregate spend calculations, more quickly identify budget variances or maverick spending, and gain leverage for contract negotiations. A: Keep the strategic benefits of accounts payable technology in mind when developing a business case for automation. Accounts payable leaders are #3: Intelligent Data Capture well aware that accounts payable solutions such as intelligent data capture The third trend is that more accounts payable departments are deploying deliver tremendous tactical benefits, particularly in terms of reducing costs intelligent data capture solutions to automate the import, extraction, (60 percent or more!), but technologies such as intelligent data capture validation, routing, and archival of data from invoices and other accounts also deliver huge strategic benefits across the enterprise, including: fewer payable documents. This technology should not be confused with basic errors, decreased warehouse charges, improved Days Payable Outstanding document scanning. Intelligent data capture solutions import and classify (DPO), better cash position, reduced borrowing, improved supplier relations, paper and electronic documents from any delivery stream (e.g. mail, fax, increased margins, and higher earnings per share. The real-time visibility email), extract header and line-item data based on preconfigured business provided by intelligent data capture, for example, enables businesses to rules, validate the data, match and link all documents related to a specific manage their working capital with greater accuracy and control. transaction, and seamlessly post approved invoices to SAP or any ERP or general ledger system. Invoices that require approval are automatically Automation also provides the visibility businesses need to capture more routed based on defined rules. These capabilities enable accounts payable discounts, and maximize returns. Additionally, the technology helps ensure departments that use SAP to reduce transaction costs, accelerate the budget and contract compliance by allowing businesses to set rules for delivery of usable data to SAP, reduce invoice approval cycle times, and price and quantity tolerances during invoice processing. And automation decrease errors. ensures that businesses have ready access to the accurate and complete information they need for planning, forecasting, and decision-making. These Not surprisingly, 27 percent of businesses plan to benefits can have a major impact on a companys bottom line: deploy automated data capture and workflow for invoice approval, IOFM reports. Studies show that every day of DPO extension yields more than $25 million in cash for a Fortune 500 Q: What impact are these trends having on company; every billion dollars of spend yields over SAP users? $400,000 in discounts per month; and more than 50 percent of supplier financing yields more than 30 A: The trends in accounts payable automation will have big ramifications percent annualized rate of return. in the payback businesses receive from their ERP investments. New technologies, changing business needs, and tight capital budgets are So dont sell the strategic benefits of accounts payable automation short! bringing rise to what Gartner calls the postmodern ERP: an ERP strategy that integrates existing investments in an ERP with third-party operational business capabilities such as accounts payable automation. This approach offers greater agility and flexibility to satisfy business needs compared to monolithic ERP approaches that depend heavily on expensive customization. Many businesses already have migrated to an environment where third-party applications work in concert with an existing ERP platform, such as SAP. About TIS Integrating an invoice processing solutionsuch as a cloud-based solution Top Image Systems (TIS) helps businesses compete in the digital economy, where that automates data capture, workflow processing, and cloud archival the customer journey begins, progresses and ends in an entirely digital environment. In finance, this means transforming paper-based, manual processes to end-to-end automated with an SAP ERP platform complements the ERP to dramatically increase processes that work the way you doon premise, in the cloud and via mobileinside of its business benefit. It also reduces the time, cost, risk, and complexity SAP. 2016. Top Image Systems.All rights reserved. required for deploying applications. As a result, more accounts payable departments will integrate third-party applications with their SAP platform.