Invoice Automation for Manufacturing

Transcription

1 Invoice Automation for Manufacturing 1

2 Alan Helm n Shared Services Manager at Flowserve n CPA, CGMA, CITP n Been with Flowserve 6 Years n Primary responsibilities the last three years have been process changes in the purchase to pay functions in various divisions at Flowserve n Alhelm@flowserve.com 2

3 What is Flowserve n Worthington Simpson brand established in 1790 n Flowserve Corporation as it exists today was created in 1997 through the merger of two leading fluid motion and control companies BW/IP and Durco International n We develop and manufacture precision-engineered flow control equipment integral to the movement, control and protection of the flow of materials in critical processes n Our product portfolio of pumps, valves, seals, automation and aftermarket services supports global infrastructure industries n Fortune 500 Company with sales in excess of $4 billion (2011) 3

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5 Flowserve Invoice Processes Pre Basware/Wells Fargo n Thirty nine different processes to receive and pay invoices n Twelve ERP s consolidating to five ERP s (Oracle, Microsoft, Avante, Symix, Epic) n No centralized point of receiving invoices in each region n Processing of invoices totally manual n Reproduce manual invoices for repetitive invoices such as rent n Check requests done manually n Manual approval process for invoices n Manually review invoices to make sure the person signing the invoice had the correct approval authority n Scanning documents was done after processing, no link to the transaction n Check printing and processing was a full day process n No ACH processing, too many expensive domestic wires n Time spent searching for invoices for monthly reports n Time spent searching for invoices in file cabinets for auditors 5

6 Mapping out prior payment practices n This was an extremely important step in our project. n Interviewed and process mapped the different practices of departments and groups. n There were similarities in the processes, but no two were really alike 6

7 Receiving Invoices in Format n During our pre Basware process review, we discovered we were receiving several invoices via n Our old process was to print these off, code them, get proper approval, and key into accounts payable (all manual of course) n Seeing this, we asked our IT group to help develop a process to put these invoices into Basware n We created an box for our vendors to send their invoices n The mailbox accepts fax as well as pdf and tiff images n The program that our IT group developed, strips the files from the and converts it to a tiff image n The file is copied to a directory that our Fast scan user picks up and places the images into Basware 7

8 Repetitive Invoices n Before Basware, our AP group had to reproduce manual invoices for repetitive invoices such as rent and get an approval from the appropriate approver. n With Contract Matching from Basware, we setup the contract, have the approver sign off on the setup, and the invoice generates automatically on the set day and approves automatically based on the Contract. 8

9 Basware Contract Administrator 9

10 Repetitive Invoices n We have several invoices that we process monthly, such as rent, leasehold improvements, services, and benefit payments. n The rent and benefit payments required the creation of an invoice to process. 10

11 Setting up a Contract 11

12 Self Generated Invoice from Contract Matching 12

13 Web Form for Check Requests n Not all accounts payable transactions have an invoice or an image n Check requests we have are mostly for tax payments and Director payments n Old process was to fill out an Excel spreadsheet, print it out, manually sign off on the payment, send it to accounts payable in interoffice mail, and key the information into accounts payable 13

14 Web Form for Check Requests n Form is tied to the Oracle Vendor Master n If your search for a vendor fails, form allows you to request a new vendor n Image of the request is passed into Basware n Coding, tax requirements, approval all done electronically in Basware 14

15 Web Form in Basware 15

16 Delegation of Authority Matrix Pre Basware n In the past, our accounts payable personnel were responsible for policing our delegation of authority matrix n When we started to implement Basware, our current Delegation of Authority Matrix was over seven years old After Basware n As an off shoot of the Basware project, we started the process of simplifying our Delegation of Authority Matrix n With the help of the our Basware project team, we were able to code this matrix inside of Basware n All invoice approvals are based on this matrix n This information is passed from our HR module in Oracle to Basware on a nightly basis n No more policing of this policy for accounts payable employees 16

17 Scan and Capture Process n Invoices are captured into the OCR software. n This captures the header information of the invoice n For purchase order line information, you need an additional software (Kofax) n Centralized OCR scanning 17

18 Scan and Capture Process Paper Invoices Fast Scan AP Master ed Invoices Connectivity Invoices 18

19 Oracle Image Viewer 19

20 Basware Image Viewer in Oracle 20

21 Virtual Accounts Payable File Cabinet n Three months after we went live with Basware, we had a discussion with our users to get feed back on the process and what they were missing from the change n One of the biggest issues for our financial analysts was that they could no longer go into the file room to see what hit their cost center n Most invoices that hit their cost centers were not in their own archives n From these discussions, we met with IT and developed the concept of a tool to research invoices that were not in his or her archive 21

22 Accounting Toolkit Query Inside of Basware 22

23 Monthly Accrual Process n Our old process for accruals was totally manual n Receive Excel spread sheets from each department with supporting information to accrue n Accounts Payable department would have to gather this information and load into Oracle n With Basware, we have all invoices that are in flow or ready to transfer accrue after our month end cut off n After the cut off, we run the accrual flag query that sets all invoices in flow or ready to transfer with an accrual flag n Then we run the accrual flag report n This is sent out to all departments, especially for those invoices that are not coded 23

24 Accrual Flag Report 24

25 Connectivity Tool for Multiple Line Invoices 25

26 Basware Connectivity Tool (e-invoicing) n Use Basware Connectivity to receive e-invoices (xml invoices) from vendors n Focus on Vendors with large amount of lines for coding to the general ledger n Difficult to make changes to coding in Basware when you have over 100 coding lines n Developed a tool that is similar to Oracle ADI n Download the information from Basware to Excel, manipulate the data in Excel, then reload the information to Basware n This tool allows us to make coding corrections more efficiently 26

27 Select an Invoice in Your Queue 27

28 Click Retrieve to Select an Invoice 28

29 Data Exported from Basware Posting lines are exported and modified in Excel 29

30 Import Changes Made in Excel File Posting lines are put through a vigorous validation process and then imported back into Basware 30

31 Payment Process n Before our project, the check printing process was a full day process and only done once a week n We had no ACH processing and had too many domestic wires n We went with Wells Fargo Adaptor to outsource our check printing process. n This allowed us to move domestic wire customers to receiving ACH transactions 31

32 Wells Fargo Adapter 32

33 Wells Fargo Services 33

34 Wells Fargo Payment Workflow 34

35 Basware Audit Improvements n In the past, we would have to spend several hours to retrieve invoices and copy them for internal, external, and tax auditors n The audit requests are in a spreadsheet format and our IT group runs a query to attach the link from the image viewer to the spreadsheet preventing any printing of invoices n No printing of invoices n Audit time was cut down by one week 35

36 What Did We Achieve n Sarbanes Oxley Compliance for Accounts Payable Controls n Better Controls across the process n Quicker processing of invoices n Less time spent on audit and SOX reviews of the accounts payable function n Less time spent on research for internal customers 36

37 Next Steps at Flowserve n Latin America Shared Services implementation n Basware implementation in Europe Shared Services 37

38 Questions 38