Whether you're the chief finance officer, chief
information officer or accounts manager, the financial, management
and operational advantages of adding invoice automation to SAP
certainly add up - to 60% cost and efficiency savings, writes
Kurt De Smet.
Any stage in the accounts process that involves manual
processing is a drag on efficiency and profitability. So it's no
surprise that
SAP users are turning their attention to extending automation
beyond core processes to traditionally paper-intensive areas, such
as procurement and invoice processing.
If critical financial data from
documents such as orders, invoices and goods received notes is
turned into digital form, it is usable in the SAP core and
management systems, and it is possible to make real gains in
efficiency.
So what benefits would your organisation see from
automating invoice processing? And what impact would it have on
IT infrastructure and operations?
Doing the maths
In a full
e-invoicing environment, automation can bring about cost
savings of 60% - a compelling business proposition for CFOs and
finance managers.
Automating invoice processing helps cut expenditure by
minimising the need for manual intervention, delivering cost
savings and efficiency gains.
Another key consideration for the finance department is clarity,
and the ability to plan and forecast. Invoice automation can unlock
valuable business data, giving a clear, top-level picture of
events, enabling better planning and easy identification of further
savings.
Making invoice automation fit the SAP
jigsaw
CIOs and IT managers need a system that fits snugly into the SAP
picture and keeps the rest of SAP implementation in its "vanilla"
state.
There are two ways of approaching this: using a tool installed
inside SAP or an accredited third-party tool working alongside SAP.
You would assume a product programmed inside SAP would be the
perfect fit, containing the latest functionality and easily
integrated. But you would be wrong.
Third-party IP workflow software inside SAP is not as advanced
or as flexible as some "outside" software, such as Invoice
Automation from BasWare, which we have deployed at Panasonic
Batteries. So-called "open-heart surgery" options, which operate
from within the SAP environment, need to be professionally
installed, integrated and maintained by SAP engineers.
We chose the "outside" BasWare product because it offers more
advanced functionality than other alternatives. It has fully
certified integration with SAP and so has been seamlessly
integrated into our existing SAP ERP infrastructure, giving us
greater control over the accounts payable process and ensuring a
streamlined and efficient process.
Plug it into the SAP interface and go
The time and cost involved in implementing an "internal" SAP
invoice processing tool is why many companies choose an external
third-party product that is a module of a state-of-the-art,
purchase-to-pay system.
SAP has well-defined interfaces to support SAP-accredited tools
and systems operating outside the SAP environment. That way, you
get a focused invoice automation system delivering clear business
benefits and extending automation, yet operating independently from
SAP and unaffected by any SAP upgrades, giving greater
stability.
Adding up the benefits
Extending automation into the finance department has strong
functional and business benefits. It unlocks potential for future
enhancements, realises immediate and sustained cost savings, and
has the clarity to optimise business processes and maximise
investment opportunities.
You will also get the buy-in of the CIO, who will be reassured
by the simple out-of-the-box installation and easy integration via
certified SAP interfaces (certified for SAP NetWeaver) - which
means no downtime, no impact on SAP resources, and minimal set-up
costs.
Kurt De Smet is European accounting manager at Panasonic
Batteries