ACCOUNTS PAYABLE AUTOMATION

As per a recent research, World-class procurement organizations continue to significantly outperform the peer group in procurement service delivery cost and productivity, operating at 18% lower cost and with 28% fewer FTEs. World-class procurement also has a significantly higher procurement return-on-investment (ROI) (i.e., the ratio of total savings generated by procurement to its total operating cost) - a 9.5x payback on investment in procurement compared to 4.57x for non-world class. However, even for world class, this number is losing ground as cost reductions and savings are forecasted to level out over the next four to five years.

The accounts payable (AP) process plays a very important role in the overall procure to pay process. Historically procurement and the AP team have operated in siloes, each reporting to a different function within the organization. When they are truly aligned and closely collaborate with each other, they bring greater value to the organization by ensuring faster processing times leading to faster payment and early payment discounts. Better transparency, visibility, compliance and cost savings via early payment discounts can truly bring significant wins to enterprises.

Enterprises receive invoices in various formats including pdf's, emails, fax, paper etc from multiple channels (emails, portals, post etc). Irrespective of whether the invoice is in a physical or electronic format, the cost of data extraction from these invoices is a cumbersome and potentially error prone process. Additionally, the cost of validations, workflows, exception handling, three-way match to ultimate posting and payment is laborious. There is little visibility to the overall process and where an invoice is pending at a particular time. A lot of time goes in responding to supplier queries and there is visibility to liabilities only upon invoice posting. The overall service delivery is sub-optimal both to the internal organization as well as to suppliers leading to poor relationships, high number of transactions simply to correct errors and associated increase in costs. This also has an impact in terms of being able to attract and retain good talent as well as on overall employee experience.

Avaali has executed over 120 projects in automating the invoice to pay process via solutions like OpenText, Kofax ReadSoft and Serrala.


Avaali Kofax competencies

Avaali is one of the largest partner for Kofax solutions and has deep expertise across Kofax ReadSoft solutions for AP Automation. ReadSoft is powering most of the large invoice automation requirements for various large enterprises

Avaali OpenText competencies

Avaali has deep skills on SAP OpenText solutions and is one of the largest partners for SAP OpenText solutions. OpenText Vendor Invoice Management is a leading solution for enabling accounts payable automation for large enterprises.

Payment approval automation

Once invoices are posted, the process until payment run in ERP is typically manual entailing passing open invoices for workflow approvals before posting the payment run in ERP. Enterprises that have automated this process not only benefit from lower process cycle time but also audit trails in terms of invoices approved for payment runs before release of payment.

Click to view Payment Approval Solution.pdf