Enhancing the User Experience at DowDuPont by Accelerating Global Cash Application David Brasseur, DowDuPont Inc. Marko Kling, Hanse Orga SESSION

Transcription

1 Enhancing the User Experience at DowDuPont by Accelerating Global Cash Application David Brasseur, DowDuPont Inc. Marko Kling, Hanse Orga SESSION CODE: ASUG11878

2

3

4 Speakers David Brasseur Finance Manager, DowDuPont David Brasseur is a Business Process Expert (BPX) at DowDuPont. He is a member of the Diamond Systems Solutions department with expertise in Accounts Receivable management, SAP ECC and Hanse Orga Autobank. Marko Kling Director Solutions Architects, Serrala Marko is responsible for the group s global PreSales activities and his team is involved in solution strategy and design. 4

5 Agenda About DowDuPont Modernizing Cash Application Solution overview Success at DowDuPont Wrap-up 5

6 Merger of Equals A merger of equals that combines industry-leading capabilities and product portfolios from two historic companies to set the stage for the creation of three independent, more focused publicly traded companies. 6

7 Three Industry Leading Companies >300 year combined history of science & innovation creates formidable industry leaders equipped to grow Materials Science Specialty Products Agriculture 7

8 Finance Organization at DowDuPont MIDLAND SHANGHAI 61,000 Payments month SAO PAOLO MUMBAI 4 Regional Shared Services Centers 8

9 Challenges & Goals Challenges Old, outdated SAP system (R/2) that was hard to support Growing rate of electronic payments with decoupled remittance advices Global company needed greater oversight of payment processing Difficult cash application process required detailed steps Goals Modern SAP system prepared for the future Global oversight of payment processing Automated Cash Application and Matching Improved usability 9

10 About Serrala 30+ years of experience Global reach 16 offices in Europe, North America and Asia-Pacific 2,500+ customers Serviced by 550+ dedicated employees

11 Solution Portfolio

12 Unique set of product, consulting & implementation solutions $ The solution leader for the universe of inbound & outbound payments and cash visibility Flexibility in delivery models, from SAP on-premise to hybrid & full cloud! Addressing the core market trends of compliance, automation, efficiency, security & transparency Ability to serve corporate customers across all industries and banks

13 Agenda About DowDuPont Modernizing Cash Application Solution Overview Success at DowDuPont Wrap-up 13

14 Modernizing Cash Application Initial cash application project Part of transition from SAP R/2 -> ECC Faster cash application Improved customer relations AR team responsible for moving open items to new 3 separate legal entities Preparing for future 14

15 Dow Chemical How it Was EUROPE R/2 R/2 R/2 NORTH AMERICA ASIA- PACIFIC R/2 Single Platform Multiple Instances R/2 LATIN AMERICA 15

16 Next Enterprise Architecture Implementation Milestone A Heritage Rohm and Haas Milestone B Dow Latin America Milestone C Dow Asia Pacific Milestone D Dow Europe Milestone E Dow North America

17 Dow Chemical How it is Now NORTH AMERICA EUROPE LATIN AMERICA ECC Single Platform Single Global Instance ASIA- PACIFIC 17

18 Old vs New SAP ECC After 2014 SAP R/2 Prior to

19 New Cash Application Processes Went from ~ 47% autopost rate to ~ 68% globally Posting rules created/maintained very quickly Users are much more efficient and get up to speed quickly Benefits extend beyond cash application FinStat Accounting Accounts Payable Treasury 19

20 DowDuPont New Company formed in September 1, 2017 Dow No system consolidation Financial consolidations done separately Limited cross-business reporting capability Corteva DuPont 20

21 AR Team Responsibilities Post Merger Separate SAP instances for 3 companies Roll up AR data to DowDuPont Holding Company Dow AR team will: Intake Material Sciences data from DuPont Carve out Specialty Products data for DuPont Carve out Argiculture data to support new legal entity Corteva 21

22 Agenda About DowDuPont Modernizing Cash Application Solution Overview Success at DowDuPont Wrap-up 22

23 Optimization Potential Automation Eliminate manual steps Processes & Functions Standardize processing across all enterprise systems Governance, Risk & Compliance Enforce compliance checks Effort Reducing cash application efforts 23

24 AR Solution Features and Benefits Sits directly in your SAP Environment Certified SAP Add-On (incl. S/4HANA) Fast and easy integration process User friendly Maintained and controlled by business unit Eliminates need to rely on IT departments or vendors for creating and maintaining posting rules Optimized Postprocessing screen Integrated Workflows Reporting Performance and trend analysis 24

25 AR Solution Process Overview Payments & Bank Statement Retrieval Automatic retrieval of bank statements (MT94x, camt.05x, etc.) Direct bank connection to ERPsystem Automatic import of bank statements Organization/ Validation/ Upload Central bank statement overview Validation of bank statements and bank accounts Processing all formats (MT94x, camt.05x, PSP etc.) Automatic upload to ERP-system Cash Application High automation for bank statements and remittance advices Flexible set of rules Global flexibility Ad-hoc reporting for KPIs Sub ledger connection Manual Assignment Modern postprocessing All information available on one single screen High quality postings Automatic posting proposals

26 Cash Application Process Identification Group line items by content filter Numerous posting rules possible per line item Line item 1 Rule 1 Exclusioncriteria Line item 2 Line item 3 Rule 2 Rule 3 Intelligence Processsequence Line item n Rule n 26

27 AR Solution Approach Posting Rules Identification Group line items by content filter Posting rules Create & validate posting records Filters Analyze line items & match against accounting data Filtering, supplementing and matching information Note to Payee Result References: / , 789 Sales document: 19/ BELNR: , VBELV2: , ,

28 Cash Application Process - Rules Easy setup of posting rules by the business team Match against 40 SAP open item fields (invoice number, purchase order number, sales order number, etc.) Use of customer names and other information (including Chinese characters) Integration of remittance information Sequence of rules Name of the rule Details (incoming, outgoing, on account, clearing, etc.) Posting details 28

29 Solution Approach Smart Maintenance One Screen Filter maintenance Templates Auto generate search patterns Complex facts always possible SMART MATCH Finance accounting Maintain new rules quickly - directly usable in production system 29

30 Cash Application Post Processing Note to Payee information Rule for posting proposal Bank statement or Bank Report items Customer open item display Central post-processing screen to post / handle exceptions Bank Statement and Bank Report exception handling All information on one screen Fast processing of manual items Auto selection of open items All open item information Unlimited users can process the bank statement at the same time (items are locked individually and not on bank statement level) 30

31 Cash Application Exception Handling OI Analyzer 31

32 Cash Application Exception Handling Tolerance setting Analysis payment history Fast analysis Ranking Detailed view 32

33 Integration with Other Solutions Refresh KPIs KPIs fields Jump to Credit & Collections 33

34 Management Reporting 34

35 Management Reporting 35

36 Efficient Deduction Handling Step 1 Step 2 Step 3 Automated Integration & Processing Highly automated cash application Flexible Rulesets High Transparency Efficient Exception Handling Workflows and proposals Integrated Monitoring Compliance Checks Assign correct reason codes Integration in Dispute Management Apply detailed reason codes Track all payment and remittance details Actively Support Collections Teams 36

37 Typical Current Process Remittance advice received (e.g. via ) sales, credit management, local accounting, etc. Customer pays Payment received Bank statement received Receivable cleared Jan 5 Jan 6 Jan 7 Delay Jan 10 Determine customer and collect remittance advice 37

38 Optimized Cash Application Process Remittance advice received automatically (e.g. via ) Customer pays Payment received and intraday bank statement processed Receivable cleared Bank statement received and automatically reconciled with intraday Jan 5 Jan 6 Jan 7 All payment and remittance information is available for automatic application or manual post-processing 38

39 Solution Approach Remittance Process Step 1 Step 2 Step 3 Step 4 Customer sends remittance information Customer sends remittance advices in different formats to one or more mail addresses Recognition/ converting/providing Remittance advice recognized and converted to a readable and importable format Automatic import of the remittance advice to SAP Cash Application Use information on the remittance advice and connects it to the corresponding bank statement line item Automated posting possible Post processing Post processing possible in solution Fast linking of a remittance advice and a line item Access to the remittance monitor/pool Customer Remittance recognition Cash Application Post processing 39

40 Remittance Integration - CHALLENGE Increasing amounts of remittance advice information sent by customers Multiple incoming channels ( , Fax, Webportals) Different formats Different sizes Individual content 40

41 Remittance Integration - SOLUTION Files with only a few line items and a simple structure using advanced SmartEye (OCR) technology information is directly merged with payment. ( No customer-specific mapping or templates are being applied) Very large files with lots of line items (invoices or deductions) or complex structures are processed using the remittance advice module (incl. Mapping per customer structure). Necessary to do individual handling per customer, no general template can be applied 41

42 Remittance Integration with SmartEye On Premise SmartEye Cloud (Machine Learning) Payment: Bank Statements / Lockbox SAP System Environment HO Remittance Advice Tables HO Remittance Advice Pool AutoBank Cash Application Automation, Reporting, Workflows, Structured files (separate processing) Unstructured files (integrated with payment) Automated link between payment and remittance advice All files are automatically linked to SAP posting documents 42

43 AR Reporting Supporting O2C Optimization 43

44 Ready for the future - Fiori Sleek new User Interface (UI) with structured transactions. Create individual role-based dashboards which enables you to easily view approvals, alerts and actions and start processes such as payment approvals BI Reporting Compatible with Fiori. Quickly set-up new reports and run queries based on daily or historical data providing comprehensive and flexible reporting 44

45 Agenda About DowDuPont Modernizing Cash Application Solution overview Success at DowDuPont Wrap-up 45

46 Success at DowDuPont Benefits Faster, more accurate cash application Improved Usability Faster reporting Easy to maintain with separate namespace Better visibility into global AR information, which supports transformation post merger Results 68% automated cash application

47 Agenda About DowDuPont Modernizing Cash Application Solution overview Success at DowDuPont Wrap-up 47

48 Lessons Learned Set realistic objectives be clear about what you want to achieve from process improvements for best results Plan for change management - communicate to staff about the project plan, training and more Educate other teams (IT, Treasury, etc.) early on in the processes since processes are inter-dependent. Promote the benefits explain what the solution does for each group it is not just an AR tool. (clearing of vendor accounts, postings to GL, etc.) 48

49 Lessons Learned Auto matching is important but 100% is always possible - set a reasonable goal to start and increase the % over time Keep up to date with technology - not always going to leap from Mainframe to modern software system We re starting to consider how to prepare for SAP S/4HANA Choosing the right solution partner is critical. Strong knowledge of AR and support for best practices made it easy to achieve success and deliver the project in a timely manner. 49

50 Benefits of AR Optimization Increased Automation Improved Governance, Risk & Compliance Standardized Processes & Functions Reduced Effort 50

51 Questions? David Brasseur Marko Kling 51

52 Come See Our Sessions From Microfiche to Robots: City of Edmonton Digitizes its AP Processes Lisa Pichette, City of Edmonton Tuesday 11:00 a.m. - 12:00 p.m. S330B Enhancing the User Experience at DowDuPont by Accelerating Global Cash Application David Brasseur, Dow DuPont Inc. Tuesday 12:30 p.m. - 1:30 p.m. S330F Discovering and Benefiting From SAP Treasury and Risk Management on SAP HANA Jochen Stiebe, Hanse Orga Group Tuesday 12:30 p.m. - 01:30 p.m. S320E Payments X.0? When Will We See Real Innovation with Blockchain, Bitcoin (or other buzzwords)? Ingo Czok, Hanse Orga Group Tuesday 03:15 p.m. - 04:15 p.m. S320F SAP Treasury and Risk Management and SAP S/4HANA: Optimization Options with Accelerators from SAP Jochen Stiebe, Hanse Orga Group Wednesday 02:30 p.m. - 03:30 p.m. S320F Preparing for the Future of Finance with Cloud, Robotics, and Blockchain Christoph Dubies, Chief Strategy Officer, Hanse Orga Group Thursday 12:30 p.m. - 1:00 p.m. Small Theatre - BA300

53 Power Bank To receive a Power Bank, your name must be registered at this session by a Serrala representative.

54

55

56 Thank you for attending my session! For questions, contact me at: Insert speaker contact information Don t forget to fill out the Session Evaluation on the Mobile App! Insert Presentation Title Session ID# Insert Speaker Name(s) & Company

57 Follow Us Thank you for your time Follow us on 57