AP Automation: The Paperless Solution for Payables

AP Automation: The Paperless Solution for Payables

Speaker Introduction Ben Skvarca Product Manager PNC Invoice Automation Solutions 5 Years at PNC Bank

Who is PNC? One of the leading financial institutions within the USA As one of the nation's top treasury management providers, with it s corporate location in Pittsburgh, PA assists clients in managing working capital more effectively and transitioning their receivables, payables, investments and information reporting activities from paper to electronic. AP Automation Services Centralized receipt of invoice documents (paper, email and fax) through one of the largest bank Lockbox networks in the United States Integration with one the world s largest electronic invoicing networks Advanced workflow user interface including purchase order matching Default general ledger coding with reallocation capabilities File validation; ERP integration Payment file initiation (Card, ACH, Card and Wire)

Agenda Building Blocks of AP Automation TS Tech Experience with AP Automation The Path Forward Questions and Answers

Invoice Receipt Paper Email Fax Supplier Portal/E-Invoicing Data Capture Scan + Data Capture (OCR) Approval Cycle Configurable Workflow GL Coding APA Archive & Reporting Voucher Creation ERP

A Holistic Purchase-to-Payment Process Improvement Solution: Enhances financial control and regulatory compliance Brings visibility to outstanding work and liability Eliminates paper and manual tasks from Accounts Payable processing Eases the transition to electronic forms of invoicing Accelerates approval and optimizes working capital Improves interaction and relationships with vendors Enables efficiency, scalability and continuous improvement Accesses AP subject matter expertise cost effectively e-invoicing integration via the Tungsten Global Network including PO Delivery, invoice submission and status updates Invoice Purchase Request Purchase Order Delivery Receipt Invoice Receipt Imaging & Archive Match and Exceptions Invoice Routing GL coding & Notes Analysis & Discounts Payment & Status Document digitization at PNC capture location for immediate paper invoice elimination from buyer environment

Speaker Introduction Steve Trentman Steve Trentman is an Assistant Chief Administrator for TS Tech Americas. He received a B.S in accounting from Franklin University, as well as an Associates degree in Business and Broadcast Production/ Engineering from Hocking College. He has worked for TS Tech for the last seven years in the accounting department.

Who is TS Tech Americas? Leading manufacturer within US TS Tech Holding Company (Japan) through its subsidiaries, engages in the manufacturing and sale of seats/interior components for Honda automobiles; with corporate locations in Columbus, OH 12 companies in US, Canada and Mexico ERP Integration Financial Application QAD Material Resource Planning Raw materials Tooling Enterprise Asset Management (Plant and Equipment Maintenance) Capital Projects Indirect spend

Purchase Req to Invoice 1) Enter PR Information into Excel 2) Walk PR around for approval 3) PR to purchasing for QAD Input 4) Receive PO & email to supplier 5) Dock Receives goods in QAD 6) Open Mail 7) Key in invoice & Match invoice 8) If mismatch Log invoice 9) Put invoice on hold 10) Email buyer for resolution 11) Make necessary adjustments 12) Take invoice off of hold 13) Update excel sheet 14) File invoice 15) Make Payment selection 16) Pull invoices for payments 17) File Payments with invoices 1) Enter PR Info into SSMS 2) PR to Purch. for QAD input 3) Receive PO Email Supplier 4) Dock Receives in goods 5) Open Mail 6) Key in invoice and Match 7) If mismatch email buyer 8) Put invoice on hold 9) Make necessary adjustments 10) Take invoice off of hold. 11) File invoice 12) Make Payment selection 13) Pull invoices for payments 14) File Payments with invoices 1) Enter information into APA 2) Receive PO-email to supplier 3) Buyer Confirm Receipt 4) If variance-match -send to buyer 5) Make Payment selection 1) Enter info into APA 2) Confirm Receipt of goods 3) Make Payment selection

Purchase Req to Invoice 1) Enter PR Information into Excel1) Electronic approvals = easy checking of PR/PO status 2) Electronic approvals = no more purchase requisitions lost during signing process 3) Electronic systems facilitate bottleneck monitoring & reporting 4) MRO receiving no longer required 5) Automated MRO vouchering 6) Automated exception routing for resolution 7) Organized exception queue & exception reporting 8) Electronic filing (no paper filing = no lost invoices) 9) Improved segregation of duties 10) Simplified internal audit 11) Standardized system & procedures allow company to leverage various site s resources due PTO 12) Standardized system & procedures allows for smaller supervisory staff 13) Centralized cash disbursements allows for elimination of redundant activities 14) Remote access anywhere in the world so approvals can be made while traveling 1) Enter info into APA 2) Confirm Receipt of goods 3) Make Payment selection

2/3 of TS Tech s total invoice volume now runs through A/P Advantage (excluding ERS Raw Materials) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Aug - Previously 100% All Invoices of invoices straight to dept. invoices acct process required human intervention 0% Athens 13 Athens 14 Athens 15 USA 13 USA 14 USA 15 TSAM 13 TSAM 14 TSAM 15 TSCA 13 TSCA 14 TSCA 15

Non-PO = Freight, Utilities, and Service invoices Aug - Oct Non PO Invoice straight to dept. invoices acct process 100% 90% 80% 70% 60% 50% Benchmarking opportunity 40% 30% 20% 10% 0% Athens 13 Athens 14 Athens 15 USA 13 USA 14 USA 15 TSAM 13 TSAM 14 TSAM 15 TSCA 13 TSCA 14 TSCA 15

Purchase Orders originating from A/P Advantage Buyer Module Aug - Oct APA PO Invoices straight to dept. invoices acct process 100% 90% 80% 1) Type in info into APA 2) Confirm Receipt of goods 3) Make Payment select 70% 60% Benchmarking opportunity 50% 40% 30% 20% 10% 0% Athens 13 Athens 14 Athens 15 USA 13 USA 14 USA 15 TSAM 13 TSAM 14 TSAM 15 TSCA 13 TSCA 14 TSCA 15

Purchase Orders originating from QAD (ERP System) Aug - Oct QAD PO Invoices straight to dept/matched. invoices acct process 100% 90% 1) Type in info into APA 2) Confirm Receipt of goods 3) Make Payment select 80% 70% 60% 50% 40% 30% 20% 10% 0% Athens 13 Athens 14 Athens 15 USA 13 USA 14 USA 15 TSCA 13 TSCA 14 TSCA 15

Summary 3,500 hour overtime reduction Headcount reduction through attrition Group supervision and consistent application of policy Group coverage for absenteeism, PTO, FMLA and turnover Standardized reporting and group benchmarking Centralization of fixed asset recordkeeping and insourcing of tax depreciation calculation Hands on support for new Mexican operations Increased emphasis on financial planning and plan vs actual analysis Not to mention non-accounting benefits such as no dock receiving for MRO

Path Forward The Path Forward Expense Reporting Hotel Meals Hotel Travel Advance

The Path Forward Upload Credit Card data into A/P Advantage, route for approval, and automate GL postings

Questions?